document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=996923>Question 996923</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A manufacturer is considering the manufacture of a new and better mousetrap. She estimates the probability that the new mousetrap is successful is 3/4. If it is successful it would generate profits of $120,000. The development costs for the mousetrap are $98,000. Should the manufacturer proceed with plans for the new mousetrap? Why or why not? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #615224 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=615224\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> if she is successful, she will make a profit of 120,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if she fails, she lost 98,000.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "her expected value is .75 * 120,000 - .25 * 98,000 = 65,500.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "based on the expected value, she should proceed with her plans.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );