$($a$)$ Compute the expected value for the profit associated with the two expansion alternatives. Round

your answers to whole numbers, if needed.

Expected Value

Medium$-$Scale

Large$-$Scale

Which decision is preferred for the objective of maximizing the expected profit?

$($b$)$ Compute the variance for the profit associated with the two expansion alternatives. Round your

answers to whole numbers, if needed.

Variance

Medium$-$Scale

Large$-$Scale

Which decision is preferred for the objective of minimizing the risk or uncertainty?