In addition, the joint group analysis determined the market would bear a price per plane somewhere within the following parameters:

Table 1

 First estimate the price per plane using the estimated prices and probabilities given in Table 1.

Part 2:

Price per plane

(million $)              Probability

-------------------------------------------

125                        .25

175                     .25

225                        .50

The estimated price per plane is given as a weighted average of all possible prices, where the weights are given by the respective probabilities of each price

So expected price per plane = (125*0.25)+(175*0.25)+(225*0.5) = $187.5 million