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Arrow Cosmetics is thinking of introducing a new product. If demand for the new product is high. the prot is expected to be 2M. If
Arrow Cosmetics is thinking of introducing a new product. If demand for the new product is high. the prot is expected to be 2M. If demand is low. Arrow Cosmetics expects to lose 0.5M. Of course. Arrow Cosmetics does not have to proceed at all, in which case there is no cost. In the absence of any market data. the best guess is that there is a 50-50 chance that demand will be high or low. What is the expected monetary value of Arrow Cosmetics1 optimal action? 0 0.25M " 3' CLTSM :3- 2M
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