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Dollar Department Stores has just acquired the chain of Wenthrope and Sons Custom Jewelers. Dollar has received an offer from Harris Diamonds to purchase the

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Dollar Department Stores has just acquired the chain of Wenthrope and Sons Custom Jewelers. Dollar has received an offer from Harris Diamonds to purchase the Wenthrope store on Grove Street for $120,000. Dollar has determined probability estimates of the store's future profitability, based on economic outcomes, as: P($80,000) -0.2, P($100,000) = 0.3, P($120,000] =0.1, and P(S140,000) -0.4. a. Should Dollar sell the store on Grove Street? b. What is the EVPI? C. Dollar can have an economic forecast performed, costing $10,000, that produces indicators 11 and 12, for which P(1 180,000) - 0.1; P(1 100,000) -0.2; P(1 120,000) = 0.6; P(11 140,000) - 0.3. Should Dollar purchase the forecast? Explain your answer. TTT Arial : 3 (12pt) T.E.E . OS Dollar Department Stores has just acquired the chain of Wenthrope and Sons Custom Jewelers. Dollar has received an offer from Harris Diamonds to purchase the Wenthrope store on Grove Street for $120,000. Dollar has determined probability estimates of the store's future profitability, based on economic outcomes, as: P($80,000) -0.2, P($100,000) = 0.3, P($120,000] =0.1, and P(S140,000) -0.4. a. Should Dollar sell the store on Grove Street? b. What is the EVPI? C. Dollar can have an economic forecast performed, costing $10,000, that produces indicators 11 and 12, for which P(1 180,000) - 0.1; P(1 100,000) -0.2; P(1 120,000) = 0.6; P(11 140,000) - 0.3. Should Dollar purchase the forecast? Explain your answer. TTT Arial : 3 (12pt) T.E.E . OS

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