Probability by means of expected values.
The ABC Co. is considering a fresh consumer product. They trust that the XYZ Co. may come out with a competing product. If ABC adds an assemblage line for the product and XYZ doesn't follow with a competitive product their expected profit is $40,000 if they add an assembly line and XYZ does follow they still expected a $10,000 profit. If ABC adds a new plant addition and XYZ doesn't produce a competitive product they expect a profit of $600,000 If XYZ does compete for this market, ABC expects a loss of $100,000. For what value of probability that XYZ will suggestion a competing product will ABC be indifferent between the alternatives?