Asked by Katherine Del Rosario on Sep 24, 2024
Verified
If the complicated technology costs $10million to develop while the simple technology costs $2million to develop,which technology is more profitable to develop?
A) The simple voice-activated software
B) The complicated thought-activated software
C) Neither of the software
D) Need more information
Profitable to Develop
Refers to projects or initiatives that are expected to yield a financial gain upon development or implementation.
Complicated Technology
Advanced and often sophisticated technology that may be difficult to understand or operate.
Simple Technology
Technology that is straightforward, easy to use, and not complicated by advanced features, often implying a lower level of sophistication.
- Comprehend the principle of expected value and how it applies to making decisions.
- Examine strategic choices through the lens of probability and cost analysis.
Verified Answer
TT
Tenzin Tsering5 days ago
Final Answer :
A
Explanation :
To calculate the expected profit for each option,
Expected profit of complicated technology = (0.3 * $50million) - $10million = $5million
Expected profit of simple technology = (0.8 * $10million) - $2million = $6million
Therefore, the simple voice-activated software is more profitable to develop.
Expected profit of complicated technology = (0.3 * $50million) - $10million = $5million
Expected profit of simple technology = (0.8 * $10million) - $2million = $6million
Therefore, the simple voice-activated software is more profitable to develop.
Learning Objectives
- Comprehend the principle of expected value and how it applies to making decisions.
- Examine strategic choices through the lens of probability and cost analysis.