Problemdunkin donuts expects sales net year to be 100000000, Ask an Expert

Finance

Problem:

Dunkin Donuts expects sales net year to be $100,000,000 if the economy is strong, $40,000,000 if the economy is steady, and $28,000,000 if the economy is weak. The executive staff believe that there is a 20% probability the economy will be strong, 60% probability that the economy will be steady, and 20% probability of a weak economy. What is the expected level of sales for the next year? Please provide step by step solution.

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