Question: The systems engineering project manager for ICE company is currently faced with the question of whether to award a $ 1 0 0 , 0

The systems engineering project manager for ICE company is currently faced with the question of whether to award a $100,000 contract to PENGUIN software company. The project manager has three internal ratings (poor risk, average risk, and good risk) for evaluation of a contractor, but does not know which category fits the PENGUIN software company. Internal ratings indicate that 40% of similar companies are poor risks, 15% are average risks, and 45% are good risks. If contract is awarded, the expected profit for poor risk is $1000, for average risk $100,000, and for good risk $2,000,000. If contract is not awarded, the ICE company expected payoff is $0.
\table[[,State of Nature/Probability,],[Alternatives,Poor Risk,Average Risk,Good Risk],[Award Contract to SW software,40%,15%,45%
The systems engineering project manager for ICE

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