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Risk Analysis Pronability

You are a risk analyst at Max Inc., which operates 15 manufacturing plants in the United States. Industry experts predict that the next year will be a bad one for your industry and 70 percent of the manufacturing plants like yours in the United States will operate at a loss.

The CEO of your company has to provide an assessment of this prediction in the next monthly shareholders' meeting. To help her in this assessment, she asks you to determine the probability that 12 or more of your 15 manufacturing plants will incur losses next year.

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You are a risk analyst at Max Inc., which operates 15 manufacturing plants in the United States. Industry experts predict that the next year will be a bad one for your industry and 70 percent of the manufacturing plants like yours in the United States will operate at a loss.

The CEO of your company has to provide an assessment of this prediction in the next monthly shareholders' meeting. To ...

Solution Summary

This solution shows step-by-step calculations in an Excel file to determine the probability that 12 or more of the 15 factories would lose money.

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