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Mathematics, 05.06.2020 01:02 Ain805
The president of a computer company must decide whether to place the company's new laptop on the market now or wait another year and continue with product testing.
The company's employees inform the president that if he releases the laptop now and no competitive devices enter the market, there will be a profit of $120,409.00; however, if he releases the laptop now and a competitive device enters the market, there will only be a small profit of $29,698.00. The company's employees also inform the president that if he waits another year and no competitive device enters the market, there will be a profit of $84,742.00; however, if he waits another year and a competitive device enters the market, there will be a loss of $59,396.00.
Suppose the company determines that there is a 22% chance that a competitive device will enter the market. What should the president do to maximize the expected profit over the next year?
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