Question: Using the attached spreadsheet, find the solution to the question. Particularly I am wondering what formulas to use for cells B9 and B10 to ensure
Using the attached spreadsheet, find the solution to the question. Particularly I am wondering what formulas to use for cells B9 and B10 to ensure that their ratios remain the same.
Question: Perform a sensitivity analysis on the probability of a great market. To do this, enter formulas in cells B9 and B10 (see Figure 9.4) to ensure that the probabilities of fair and awful remain in the same ratio, 35 to 20, and that all three probabilities continue to sum to 1. Then let the probability of great vary from 0.25 to 0.50 in increments of 0.05. Is it ever best to abandon the product in this range?

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