Question: a . The probability that the item will NOT continue to be produced is 0 . 2 5 b . The probability that the item

a
.
The probability that the item will NOT continue to be produced is
0
.
2
5
b
.
The probability that the item will NOT continue to be produced is
-
7
5
%
c
.
The expected value in monetary terms for bringing the manual assembly process in
-
house is $
3
0
0
k
d
.
The expected value in monetary terms for bringing the manual assembly process in
-
house is $
3
3
7
.
5
k
e
.
In terms of expected value, it is better to bring the manual assmbly process in
-
house
f
.
If the part does NOT continue to do well, the expected value is still positive for both options
(
in
-
house and outsourcing
)
g
.
The company will need to hire more than three workers
h
.
The expected value for the ousourcing option is $
4
2
0
k
i
.
The difference in the bottom line between the two options is $
1
7
5
K
j
.
Information on the number of workers for bringing the assembly in
-
house is irrelevant for making the decision

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