Answer:
Location C should be selected.
Step-by-step explanation:
Consider the provided information,
We need to determine which location should be selected.
We need to select the location with highest outcome
Location A) Probability / Outcome .50 / 20% .30 / 9% .20 / -10%
Outcomes = [tex]0.5 \times 20+0.3\times 9+0.2\times (-10)[/tex]
Outcomes = [tex]10+2.7-2[/tex]
Outcomes = [tex]10.7\%[/tex]
Location B) Probability / Outcome .40/ 19% .32 / 7.5% .28 / -11%
Outcomes = [tex]0.4 \times 19+0.32\times 7.5+0.28\times (-11)[/tex]
Outcomes = [tex]7.6+2.4-3.08[/tex]
Outcomes = [tex]6.92\%[/tex]
Location C: Probability / Outcome .45 / 22% .50 / 6% .05 / -15%
Outcomes = [tex]0.45 \times 22+0.50\times 6+0.05\times (-15)[/tex]
Outcomes = [tex]9.9+3-0.75[/tex]
Outcomes = [tex]12.15\%[/tex]
Hence, location C has highest outcomes among all the locations. So Location C should be selected.
