Dylan on 8/7/2007 is correct too with -1.5 Billion for Part B. Dylan used: For part B it should be .1*(85-10) + .9*(-10) = -1.5 billion. If you obtain the patent your expected profit is 85 billion but you have spent 10 billion to obtain the patent and so if you obtain the patent, your net profit is 75 billion.
|