Success or failure of the second


A soap manufacturing company is planning to introduce two new laundry detergents. The potential profits or losses are partly depenent on whether the leading competitor is already planning to market similar products. The first product will yeild a profit of $100,000 if the competitor has not developed a competing product but a loss of $50,000 otherwise. The second product will yeild a profit of $80,000 without the competition but a loss of $30,000 otherwise. The probability that the competitor has developed a rival is 0.6 for the first product and 0.7 for the second. Let X denote the product is INDEPENDENT of the success or failure of the second.

A.) Find the probability distribution of X and graph it.

B.) Find the mean value of X.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Success or failure of the second
Reference No:- TGS0750681

Expected delivery within 24 Hours