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Since the possible outcomes appear to be a Dog, Standard, or Killer application, Kay thinks it only makes sense to consider batch sizes that correspond.

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Since the possible outcomes appear to be a Dog, Standard, or Killer application, Kay thinks it only makes sense to consider batch sizes that correspond. Thus, the only alternatives they are considering at this time are: 1 Don't sign with Ivan. 2 Sign with Ivan, do the test run, check out the reviews, and then make a decision to either a Drop the product at that point, b Make SpeakEZ in batches of 10,000 copies, c Make SpeakEZ in batches of 75,000 copies, or d Make SpeakEZ in batches of 250, 000 copies. Kay, after consideration, has assessed the probabilities that SpeakEZ might face a Dog, Standard, or Killer demand. She has also provided for you the track record of the magazine reviews in the past. Three hundred past reviews of products by the magazines are shown, with the breakdown of the demand level that actually occurred for those products later on. In considering the SpeakEZ decision, keep in mind that making 10,000, 75,000, or 250,000 copies per batch is a decision to which PeachyPub must commit before they know whether the product will turn out to be a Dog, a Standard, or a Killer application (but after reading the reviews). Not only that, but the reviews do not determine the demand levels. They only improve your state of information about what demand level might materialize. Thus, no matter what kind of review the techie magazines give, any production decision is worth evaluating and any demand level still has some chance of occurring

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