Question

11. Jerry Bauman's company is considering expansion of its current facility to meet increasing demand. If demand is high in the future, a major expansion would result in an additional profit of $ 800,000 but if demand is low, there would be a loss of s 500,000. If demand is high, a minor expansion will result in an increase in profits of S 200.000, but if demand is low, there is a loss of S 100,000. Jerry believes that there is a probability of 0.6 that demand will be high in the future a. What should Jerry do? Show your working. (6 points) 12.A cosmetic manufacturers marketing department has developed a linear trend equation tha urd t0 redict annual sales of its popular Hand and Foot Cream: loch in 1983に!