(Answered) A company has to choose between two alternative products

Statistics

A company has to choose between two alternative products: product A is estimated to have a 0.45 likelihood of success while product B is thought to have a 0.6 probability of success. If product A is successful it will make a profit of CHF 9000 for the company. If it is a failure it will make a loss of CHF 2100. Product B if successful will make a profit of CHF 7500 for the company, but if a failure will cause the company a loss of CHF 1500. Compute the ‘net' expected values for each product (i.e. expected value for its success minus expected value for its failure). Based on these ‘net' expected values, which product should the company pick?

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