A company is making a decision about ordering a newproductto sell during thesummerseason.They are deciding whether or not to undertake market research to evaluate the potential market for the product.They haveonly one opportunityto order the product for this season and are committed to makingeithera small order or a large order.

If they choose not to undertake the research, they can make one of two choices:place a large order or place a small order.If they place an order the probability that demand is high is60% and that demand is low is40%.

If they undertake the market research, the chance that they will get favourable results is55% and unfavourable results is45%.If they get unfavourable results, the probabilityof high demand is30% and of low demand is 70%.If they get favourable results, the probability of high demand is 80% and of low demand is 20%.The cost of doing the research is $10,000and needs to get subtracted from the net return when you do market research.

If they place a small order and demand is low the net return is $10,000.If they place a small order and demand is high the net return is $100,000.If they place a large order and demand is low the return is $-50,000.If they place a large order and demand is high the net return is $200,000.

a) If they do market research, and the market is favourable, and they small order, what is the expected value of this branch? Answer with a whole number.

b) If they do market research, and the market is favourable, and they small order, what is the expected value of this branch? Answer with a whole number.