A firm making production plans believes there is a 30% probability the price will be $10,a 50% probability the price will be $15,and a 20% probability the price will be $20.The manager must decide whether to produce 6,000 units of output A),8,000 units B)or 10,000 units C).The following table shows 9 possible outcomes depending on the output chosen and the actual price. If the mean-variance rule is used,how much should the firm produce?

Question

A firm making production plans believes there is a 30% probability the price will be $10,a 50% probability the price will be $15,and a 20% probability the price will be $20.The manager must decide whether to produce 6,000 units of output A),8,000 units B)or 10,000 units C).The following table shows 9 possible outcomes depending on the output chosen and the actual price.  If the mean-variance rule is used,how much should the firm produce?

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The Answer of A firm making production plans believes there is a 30% probability the price will be $10,a 50% probability the price will be $15,and a 20% probability the price will be $20.The manager must decide whether to produce 6,000 units of output A),8,000 units B)or 10,000 units C).The following table shows 9 possible outcomes depending on the output chosen and the actual price.  If the mean-variance rule is used,how much should the firm produce?

A Firm Making Production Plans Believes There Is a 30