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Q. You're the manager of global opportunities for a U.S. manufacturer, who is considering in Europe expanding sales. As market research has identified three potential market opportunities: England, France, and Germany. If you enter the English market, you have 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 chance if failure (selling nothing). If you enter the French market, you have a 0.4 chance if big success (selling 120,000 units at a per-unit profit of $9), a 0.4 chance of moderate success (selling 50,000 units at a per-unit profit of $6), and a 0.2 chance failure (selling nothing). If you enter the German market, you have a 0.2 chance of huge success (selling 150,000 units at a per-unit profit of $10, a 0.5 chance id moderate success (selling 70,000 units at a per-unit profit of $6), and a 0.3 chance failure (selling nothing). If you can enter only one market, and the cost of entering the market (regardless of which market you select) is $250,000, should you enter one of the European markets? If so, which one? What is your expected profit, if you enter?
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