Question

Kenneth Brown is the principal owner of Brown Oil. After quitting his university teaching job, Ken has been able to increase his annual salary by a
factor of over 100. At the present time, Ken is forced to consider purchasing some more equipment for Brown Oil due to competition. His alternatives are shown in the following table:

Equipment	Favorable Market ($)	Unfavorable Market ($)
Sub 100	300,000	-200,000
Oiler J	250,000	-100,000
Texan	75,000	-18,000

What is the critical probability under which it would not make a difference to Ken when choosing between Sub100 and the Oiler J? Solve Graphically using Excel.

Answer 1