Solution-Compute the expected cost for each decision

Compute the expected cost for each decision

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Reference no: EM132464919

SellsLotsOfStuff.com, a small online retailer, is considering buying a firewall for its website. The costs of the firewall is $10,000. There is an 85% chance that the site will not be hackerattacked during the life of the firewall, a 10% chance of minor attack occurring resulting in $25,000 in damage, and a 5% chance of a major attack occurring resulting in $125,000 in damage. Construct an excel spreadsheet to do the following for A and B:

A. Compute the expected cost for each decision and select the best one strictly on the basis of expected cost.

B. Discuss the risks involved with basing the decision strictly on expected cost.

Reference no: EM132464919

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Compute the expected cost for each decision

Reference no: EM132464919

Reference no: EM132464919

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