Question: QUESTION FOUR [20] Company A is attempting to predict future profit from a new project and the following probability distribution has been prepared: State 1

QUESTION FOUR [20] Company A is attempting to predict future profit

QUESTION FOUR [20] Company A is attempting to predict future profit from a new project and the following probability distribution has been prepared: State 1 2 Probability 0.10 0.40 0.40 0.10 R23 000 Profit -R150 000 -R20 000 R40 000 R300 000 3 4 Expected value Required: Should the company accept the new project

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