Question

You are an entrepreneur, and considering whether to open a small or a large shop. Both size of shops may receive either a high or a low demand. From a research you have made, you know that 76% of the shops receive high demand; and 57% of these shops are small. Also, you have found in your research that 90% of the shops which receive low demand are also small. You expect that a large shops a profit of 690 thousand liras per year if it receives a high demand, and 48 thousand liras of profit if the demand is low. If the shop is small, the profit in high and low demand situations are 345 and 72 liras respectively. Yearly costs of large and small shops are 250,000 TL and 40,000 TL. What is the expected profit of opening a small shop? (rounding applied)

a- Question is incorrect (missing information).

b- 214 thousand liras

c- 202 thousand liras

d- 393 thousand liras

e- 167 thousand liras

Answer 1