Questions 51 to 54 Payoff (PW) = 12 Strong Demand Probability =0.5 Canada- Payoff (PW) = 1 14 wide sales Weak Prob. = 0.5 Strong Demand Demand Strong Demand (Prob. = 0.2) Payoff (PW) = 10 Prob. =0.7 Ontario sales only Payoff (PW) = -5 Weak Demand Strong Demand Prob. = 0.3 Payoff (PW) = 7 DECISION MARKET Prob. =0.8 Canada- Weak Payoff (PW) = -4 wide sales Prob. = 0.2 Weak Demand Demand Strong Demand (Prob. = 0.8) Payoff (PW) = 8 Prob. =0.6 Ontario Payoff (PW) = -3 sales only Weak Demand Prob. = 0.4 Prob. = 1 SELL If you decide to market your invention (instead of selling it) and market demand is projected to be strong (probability of 0.2), your expected payoff (i.e., the expected PW) is a) $4.6 b) 6.3 c) 9 d) 13 51. 52. If you decide to market your invention (instead of selling it) and market demand is projected to be weak (probability of 0.8), your expected payoff (i.e., the expected PW is a) $4.6 b) 6.3 c) 9 d) 13 If you decide to market your invention (instead of selling it), your expected payoff (i.e., the expected PW) is a) $4.6 b) 6.3 53. If you decide to sell your invention (instead of marketing it), your expected payoff (i.e., the expected PW) is a) $4.6 b) 6.3 c) 9 d) 13 54. Answers are below. Please show the steps to obtaining them thanks! 51) D 52) A 53) B 54) C Questions 51 to 54 Payoff (PW) = 12 Strong Demand Probability =0.5 Canada- Payoff (PW) = 1 14 wide sales Weak Prob. = 0.5 Strong Demand Demand Strong Demand (Prob. = 0.2) Payoff (PW) = 10 Prob. =0.7 Ontario sales only Payoff (PW) = -5 Weak Demand Strong Demand Prob. = 0.3 Payoff (PW) = 7 DECISION MARKET Prob. =0.8 Canada- Weak Payoff (PW) = -4 wide sales Prob. = 0.2 Weak Demand Demand Strong Demand (Prob. = 0.8) Payoff (PW) = 8 Prob. =0.6 Ontario Payoff (PW) = -3 sales only Weak Demand Prob. = 0.4 Prob. = 1 SELL If you decide to market your invention (instead of selling it) and market demand is projected to be strong (probability of 0.2), your expected payoff (i.e., the expected PW) is a) $4.6 b) 6.3 c) 9 d) 13 51. 52. If you decide to market your invention (instead of selling it) and market demand is projected to be weak (probability of 0.8), your expected payoff (i.e., the expected PW is a) $4.6 b) 6.3 c) 9 d) 13 If you decide to market your invention (instead of selling it), your expected payoff (i.e., the expected PW) is a) $4.6 b) 6.3 53. If you decide to sell your invention (instead of marketing it), your expected payoff (i.e., the expected PW) is a) $4.6 b) 6.3 c) 9 d) 13 54. Answers are below. Please show the steps to obtaining them thanks! 51) D 52) A 53) B 54) C
