The management of MultiVision, a cable TV company, intends to submit a bid for the cable television rights in one of two cities, A or B. If the company obtains the rights to city A, the probability of which is 0.3, the estimated profit over the next 10 yr is $10 million; if the company obtains the rights to city B, the probability of which is 0.4, the estimated profit over the next 10 yr is $7 million. The cost of submitting a bid for rights in city A is $300,000 and that of city B is $300,000.

By comparing the expected profits for each venture, determine whether the company should bid for the rights in city A or
city B.
a. City A
b. City B


a. City A

Mathematics

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