An entrepreneur wants to determine whether it would be profitable to establish a gardening service in a local suburb. The entrepreneur believes that there are four possible levels of demand

An entrepreneur wants to determine whether it would be profitable to establish a gardening service in a local suburb. The entrepreneur believes that there are four possible levels of demand for this gardening service: Very low demand—1% of the households would use the service. Low demand—5% of the households would use the service. Moderate demand—10% of the households would use the service. gh demand—25% of the households would use the service. Based on past experiences in other suburbs, the entrepreneur assigns the following probabilities to the various demand levels: P(gh demand) = 0.10 P(Moderate demand) = 0.20 P(Low demand) = 0.50 P(Very low demand) = 0.20 The entrepreneur has calculated the following profits or losses ($) of this garden service for each demand level (over a period of one year): ACTION DEMAND Provide Garden Service Do Not Provide Garden Service Very low -50000 low 60000 Moderate 130000 gh 300000

Do you need us to help you on this or any other assignment?


Make an Order Now