Acme Automotive company is working on a new smartphone docking station accessory, targeting automotive performance enthusiasts. In addition to docking your smart phone the accessory will provide trip performance tracking information and perform other voice activated navigational searches. Auto enthusiasts have grown in number to10 percent of the total US population now estimated at 326 million. It is estimated that 20 percent of the population own performance cars that do not provide navigational features and would be a good market segment to target. That makes the potential market equal to 6.52 million potential customers for the new smartphone docking accessory. Acme has effective marketing and distribution through multiple chain auto parts stores, so expects to saturate (cover 100%) the market. The market for performance accessories is fickle, and Acme suspects the accessory has a limited life span. Acme is also unsure whether to spend the additional money to include the navigation functions in the accessory. If Acme includes the navigation functions, it is expected to boost the sales rate from 5% to 7% of the market, unless another competitor enters the market. If another competitor enters the market, Acme believes the conversions will be less 2.5% for no navigation, but that the increased publicity would increase sales with navigation to 10% The probability of the competitor launch is 60%, Construct a payoff table for the decisions and uncertainties. The contribution from each sales is $11.90. What is the expected monetary value (EMV) of perfect information? Select one: a $2,715,580 b. $0 $4,267,340 d. $8,997,264 Acme Automotive company is working on a new smartphone docking station accessory, targeting automotive performance enthusiasts. In addition to docking your smart phone the accessory will provide trip performance tracking information and perform other voice activated navigational searches. Auto enthusiasts have grown in number to10 percent of the total US population now estimated at 326 million. It is estimated that 20 percent of the population own performance cars that do not provide navigational features and would be a good market segment to target. That makes the potential market equal to 6.52 million potential customers for the new smartphone docking accessory. Acme has effective marketing and distribution through multiple chain auto parts stores, so expects to saturate (cover 100%) the market. The market for performance accessories is fickle, and Acme suspects the accessory has a limited life span. Acme is also unsure whether to spend the additional money to include the navigation functions in the accessory. If Acme includes the navigation functions, it is expected to boost the sales rate from 5% to 7% of the market, unless another competitor enters the market. If another competitor enters the market, Acme believes the conversions will be less 2.5% for no navigation, but that the increased publicity would increase sales with navigation to 10% The probability of the competitor launch is 60%, Construct a payoff table for the decisions and uncertainties. The contribution from each sales is $11.90. What is the expected monetary value (EMV) of perfect information? Select one: a $2,715,580 b. $0 $4,267,340 d. $8,997,264
