Based on our Starbucks analysis report, 4 out of every 20 drinks are returned because of a customer complaint and 16/20 are not returned. Starbucks makes $4 on a typical drink not returned (probability of 16/20 ), but loses -$6 (probability of 4/20) when a drink is returned because the employee has to re-make it. What is the Expected Value of this problem and are they going to make a profit ?
