BRYCE DISCOUNT STORE (PART 3) The management of Bryce is not satisfied with the gamble involved in basing a decision on the results of a financial analysis of the three plans and the level-of-sales demand based adjusted statistical projections. They have therefore contacted a local firm, Market Specialist Associates (MSA), about evaluating the potential demand in Atlanta for their proposed outlet. Genevieve Poynter, manager of MSA, tells Bryce that a market research study to provide information desired will cost $50,000. The study can be made soon enough to satisfy the needs of Bryce Discount. However, Bryces management is not sure about the accuracy of market research studies. When this concern is pointed out, Poynter is quick to admit that their research is not perfect. After all, she responds, the only things in life that are certain are death and taxes. When pressed to come up with numbers, she presents the records of MSA for their past studies. These studies show that if the future demand is, in fact, high, theres an 85% chance that their market research will confirm the high future demand, a 10% chance that their market research will indicate a medium future demand, and a 5% chance that their market research will indicate a low future demand. Moreover, if the future demand is medium, theres an 80% chance that their market research will confirm the medium demand and a 10% chance for its indicating a high or low future demand. Finally, if the future demand is low, theres an 85% chance that their market research will confirm the low demand, a 10% chance it will indicate a medium future demand and a 5% chance it will indicate a high future demand. a. Should Bryce Discount hire MSA to do the market research before deciding which process to select? Show calculations to justify your response. b. What is the expected value of the sample information? c. What is the efficiency of the sample information relative to its cost? Relative to the value of perfect information? d. If the marketing research indicates the future demand will be medium, what plan should Bryce implement? What is its EMV? What are the maximum and minimum payoffs that Bryce should anticipate from implementing the plan, and what are their likelihoods?