Xun Xu’s Aeronautics is comparing market research proposals from two different companies. If both research reports were free, the EMV using the report from Jackson Analytics would be $240,000, while the EMV using the report from Witt Consulting would be $265,000. The report from Jackson Analytics would cost $15,000, and the report from Witt Consulting would cost $50,000. With no market research, the EMV would be $180,000. With perfect information, the EMV would be $300,000.

(a) What is the expected value of sample information for both proposals?

(b) What is the efficiency of sample information for both proposals?

(c) Which proposal, if either, should be chosen?