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a)   General Products Company (GPC) had decided to introduce a new product out of the three products A, B, C.

Product C is risk free and the net profit is \$1million= \$1000000

It is given that product B is more risky than product C.

P (Sales High for B) = 0.38 and the net profit is \$8 million (Nowozin et al.2013).

So, the estimated profit is 0.38*8000000= \$ 3040000

P (Sales Medium for B) = 0.12 and net profit of \$4 million

So, the estimated profit is 0.12*4000000 = \$ 480000 (Dekker et al 2013).

P (Sales Low for B) = 0.50 and the company reaches break-even point; i.e. the company makes no profit or gain when the sales is low for product B.

So, the estimated profit = 0.50*0 = 0

For product A,

Probability of delay is 0.05

Probability of no delay = 0.95

OR

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