Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[4]

Using Fig. 1.1. Calculate the expected monetary value (EMV) for the new factory in country M (option B).

(b)[12]

Evaluate whether TC ought to build the new factory in country M (option B).

Worked solution & mark scheme

This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: Award 1 mark for showing the optimistic outcome calculation: $9.0m × 0.7 = $6.3m.

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