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A company considers to enter a new market which has four possible levels of grow...
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A company considers to enter a new market which has four possible levels of growth: high growth, fair growth, low growth, and no growth. The probabilities for the high, fair, and low levels of growth are 0.4, 0.25, and 0.2 respectively. The potential profit for the four possible market growths are $100,000,000, $80,000,000, and $20,000,000, and $5,000,000 respectively. Based on the above scenario, the expected value of the profit is:
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