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Company X has assessed a 60%/40% probability of success

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Company X has assessed a 60%/40% probability of success if it introduces a new soap on the market. If the soap is successful, the company will make a net profit of $225,000. If the soap does not sell, the company will lose $65,000. What is the expected value of this decision?

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The solution provides detailed explanations and answer for the problem regarding the probability of success of introducing a new product.

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In probability theory the expected value of a random variable is the sum of the probability of each ...

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