Huntz Food Products is attempting to decide if it should introduce a new line of salad dressings
Question:
The company believes the probability of success for the salad dressings is 0.50 if it is introduced without the test market. If the company does conduct the test market and it is positive, the probability of successfully introducing the salad dressings increases to 0.8. If the test market is negative and the company introduces the salad dressings anyway, the probability of success drops to 0.30.
Using decision-tree analysis, determine if the company should conduct the test market.
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Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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