Question: Gamma Industries is evaluating two different manufacturing systems (Alpha and Beta): Possible Outcome Probability Rate of Return Alpha System Rate of Return Beta System Optimistic

Gamma Industries is evaluating two different manufacturing systems (Alpha and Beta): Possible Outcome Probability Rate of Return Alpha System Rate of Return Beta System Optimistic .25 .40 .20 Most likely .50 .20 .30 Pessimistic .25 (.10) (.20)

Which manufacturing system provides the lowest expected return?

a. Alpha System b. Beta System c. Not enough information

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