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A toy manufacturing company plans to develop a new toy for the holiday season and will choose one of the two versions under consideration: Special

A toy manufacturing company plans to develop a new toy for the holiday season and will choose one of the two versions under consideration: Special and Regular editions.

Historically, 60% of their new toys have had high consumer demand and 40% have had low consumer demand.

The following table summarizes the profit that each alternative generates under each demand scenario (in $Million):


High DemandLow Demand
Special Edition6010
Regular Edition3030

The managers of the company consider conducting a market research study to obtain sample information about consumer demand. Similar studies have found that:

  • 80% of the company's products that had high consumer demand had previously received positive market survey responses.
  • 10% of the company's products that had low consumer demand had previously received positive market survey responses.

Given this information, calculate the Expected Value of Sample Information (EVSI) and submit your answer.

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