Calculate the maximum expected emv

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Jerry is considering purchasing a food truck. He has the option to buy a small truck, a large truck or no truck. The small truck can earn $75,000 in a good market,$25,000 in an average market and -$40,000 in a bad market. The large truck can earn $100,000 in a good market, $35,000 in an average market, and -$60,000 in a bad market. The possibility for a good market is .25, an average market, .60, and a bad market .15. Calculate the maximum expected EMV.

Reference no: EM132388110

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