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A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs
A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs overheads and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows. Light Demand Moderate Demand Heavy Demand Probability Windup action $ $ $ Pneumatic action $ $ $ Electrical action $ $ $a What is the EMV of each decision alternative?
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