Determine whether or not to stock a large supply of steel. There is uncertainty in the price of steel. Based on past history the following data are available Price (future) Prob (Price) PW if stocked PW if not stocked High 0.3 100000 0 Medium 0.5 -10000 0 Low 0.2 -50000 0 What is the probability that stocking steel will result in a negative present worth (PW)?
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Determine whether or not to stock a large supply of steel. There is uncertainty in the price of steel. Based on past history the following data are available
Price (future) |
Prob (Price) |
PW if stocked |
PW if not stocked |
High |
0.3 |
100000 |
0 |
Medium |
0.5 |
-10000 |
0 |
Low |
0.2 |
-50000 |
0 |
What is the probability that stocking steel will result in a negative present worth (PW)?
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