You must decide between Contract A and Contract B under similar circumstances to the Overview example. Gain the factory has a fixed overhead rate of $40$ million dollars.

First get the two expected values $($as in Mod $7)...$ then, calculate the standard deviations and comment accordingly!

Contract A Contract B

Profit $($millions$)$ Probability Profit $($millions$)$ Probability

$250\mathrm{.}3200\mathrm{.}1$

$500\mathrm{.}1800\mathrm{.}6$

$750\mathrm{.}1950\mathrm{.}2$

$1200\mathrm{.}5800\mathrm{.}1$