Case 1 Medium-Scale Large-Scale Expansion Profits Expansion Profits Annual Profit ($1000s)P(x)Annual Profit ($1000s)P(x) DemandLow5020%020% Medium15050%10050% High20030%30030% Expected...

Case 1
            Medium-Scale         Large-Scale
            Expansion Profits        Expansion Profits
            Annual Profit
($1000s)    P(x)    Annual Profit
($1000s)    P(x)
    Demand    Low    50    20%    0    20%
        Medium    150    50%    100    50%
        High    200    30%    300    30%
    Expected Profit ($1000s)        145        140
    Risk Analysis for Medium-Scale Expansion
    Demand    Annual Profit (x)
$1000s    Probability P(x)    (x - µ)    (x - µ)2    (x - µ)2 * P(x)
    Low    50    20%    -95    9025    1805
    Medium    150    50%    5    25    12.5
    High    200    30%    55    3025    907.5
                    σ2 =    2725
                    σ =    52.202
    Risk Analysis for Large-Scale Expansion
    Demand    Annual Profit (x)
$1000s    Probability P(x)    (x - µ)    (x - µ)2    (x - µ)2 *...