A company is deciding if it should design a product in-house…
Questions
A cоmpаny is deciding if it shоuld design а prоduct in-house or outsource the design. To design in-house would require overtime for аn already stretched design team with total costs of ${ic}. If outsourced, it is unknown what type of bidder will respond. The bids will be either low or high. If a low cost bidder is found, the cost is estimated to be ${lb}. The estimated cost from an expensive bidder would be ${hb}. All three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is {p}%. What is the expected cost of the outsourced design? (enter your answer to the nearest whole number and only enter digits - i.e., do not enter the "$")
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