Probabilities of Profit Projections
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A new product has the following profit projections, associated probabilities, and indifference probability:
Profit Probability Indifference Probability
$150,000 .10 --
$100,000 .25 .95
$50,000 .20 .70
0 .15 .50
-50,000 .20 .25
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Solution Summary
The probabilities of profit projections are determined.
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