Question: MedStar Health is expanding into Virginia. The firm must select one location where it can build a clinic to serve patients. The following table lists the expected profits for clinics in three locations and the expected probabilities of the two possible situations: high numbers of patients utilizing the clinic or low numbers of patients utilizing the clinic.
| Location |
High (0.75) |
Low(0.25) |
| Alexandria |
$1,500,000 |
$600,000 |
| Woodbridge |
$950,000 |
$900,000 |
| Leesburg |
$1,200,000 |
$200,000 |
Create a sensitivity graph comparing the different alternatives as the probability of numbers of patients changes.