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
b
The probability that the item will NOT continue to be produced is
c
The expected value in monetary terms for bringing the manual assembly process in
house is $
k
d
The expected value in monetary terms for bringing the manual assembly process in
house is $
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 $
k
i
The difference in the bottom line between the two options is $
K
j
Information on the number of workers for bringing the assembly in
house is irrelevant for making the decision
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