Question: Q5. Gamma Industries is evaluating two different manufacturing systems (Alpha and Beta): Possible Outcome Probability Rate of Return Alpha System Rate of Return Beta System
Q5. 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?
- Alpha System
- Beta System
- Not enough information
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