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Ricardo and sons are planning to invest in advertising to sell three of their products. There are three different outcomes: A sells the most, B
Ricardo and sons are planning to invest in advertising to sell three of their products. There are three different outcomes: A sells the most, B sells the most or C sells the most. Two possible states exits, good and bad. The table below indicates the profit and losses of investing in the advertising of the three products under given states good and bad. Construct an Excel spreadsheet to answer the following: Determine which product they should invest in this year based on maximizing expected value. Create a sensitivity graph comparing the different alternatives as the probability of Good changes
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