Reference no: EM132977003

You recently made a decision at work. The firm was in a difficult position and you had to choose between two unpleasant options. Option 1 had a 25% chance of success, which would have made the company $100,000 and a 75% chance of failure, which would have lost the company $300,000. Option 2 had a 10% chance of success, which would have made the company $600,000 and a 90% chance of failure, which would have lost the company $400,000. Using every possible piece of information available to you and the company at the time, you chose option 1. Unfortunately, the result was a failure so now you have an irate boss in your office claiming that you made the wrong choice and lost $300,000. Even worse, it looks like option 2 would have resulted in a success, so your boss is arguing you really lost almost one million dollars. Defend your decision using the material from our class and save your job! (Hint: Expected value is one piece of the answer here, but you'll want a bit more than that for full credit)