Question: ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s ) based on next year's demand are shown

ABC Inc. must make a decision on its current

ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s ) based on next year's demand are shown in the table below. Refer to the information above. Assume that ABC Inc. has hired a marketing research firm that provided additional information regarding next year's demand. Suppose that the probabilities of low and high demand are assessed as follows: P( Low )=0.4 and P( High )=0.6. What is the expected value under certainty? 200 140 0 160

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