Question: Develop a risk profile for the decision selected in part ( d ) . What is the most likely cost, and what is its probability?
Develop a risk profile for the decision selected in part d What is the most likely cost, and what is its probability? The most likely cost is the cost associated with the outcome that has the highest probability. From the given probabilities, the most likely outcome is miles with probability Therefore:
The most likely cost is for Dealer A at $
The probability of this outcome is
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