solve doing a desition tree.
Excercise 3 Jim Sellers is thinking about producing a new type of electric razor for men. If the market were favorable, he would get a return of $100,000, but if the market for this new type of razor were unfavorable, he would lose $60,000. Jim is considering using Boesch Marketing Research to gather additional information about the market for the razor. The researchers have suggested they use either a survey or a pilot study to test the market. The survey would be a sophisticated questionnaire administered to a test market, it will cost $5,000. Another alternative is to run a pilot study, this would involve producing a limited number of the new razors and trying to sell them in town cities that are typical of American cities. The pilot study is more accurate but is also more expensive, it will cost $20,000. The researchers have suggested that it would be a good idea for Jim to conduct either the survey or the pilot before Jim makes the decision concerning whether to produce the new razor or not. But Jim is not sure if the value of the survey or the pilot is worth the Jim estimates that the probability of a successful market without performing a survey or pilot study is 0.5. Furthermore, the probability of a favorable market given a favorable survey results for razors is 0.7, and the probability of a favorable market for razors given an unsuccessful survey results is 0.2. In addition, the probability of an unfavorable market given an unfavorable pilot study result is 0.9 and the probability of an unfavorable market result given favorable pilot study results for razors is 0.2. The probabilities of favorable results of both the survey and the pilot study are 0.45. What is the best decision using EMV? Present a conclusion and the tree. cost. Suo Particiants Share Saree Reaction MacBook Pro 80 888 3 1 & 2 @ 3# $ 4 96 5 6 - 8 W E 20 Y U Excercise 3 Jim Sellers is thinking about producing a new type of electric razor for men. If the market were favorable, he would get a return of $100,000, but if the market for this new type of razor were unfavorable, he would lose $60,000. Jim is considering using Boesch Marketing Research to gather additional information about the market for the razor. The researchers have suggested they use either a survey or a pilot study to test the market. The survey would be a sophisticated questionnaire administered to a test market, it will cost $5,000. Another alternative is to run a pilot study, this would involve producing a limited number of the new razors and trying to sell them in town cities that are typical of American cities. The pilot study is more accurate but is also more expensive, it will cost $20,000. The researchers have suggested that it would be a good idea for Jim to conduct either the survey or the pilot before Jim makes the decision concerning whether to produce the new razor or not. But Jim is not sure if the value of the survey or the pilot is worth the Jim estimates that the probability of a successful market without performing a survey or pilot study is 0.5. Furthermore, the probability of a favorable market given a favorable survey results for razors is 0.7, and the probability of a favorable market for razors given an unsuccessful survey results is 0.2. In addition, the probability of an unfavorable market given an unfavorable pilot study result is 0.9 and the probability of an unfavorable market result given favorable pilot study results for razors is 0.2. The probabilities of favorable results of both the survey and the pilot study are 0.45. What is the best decision using EMV? Present a conclusion and the tree. cost. Suo Particiants Share Saree Reaction MacBook Pro 80 888 3 1 & 2 @ 3# $ 4 96 5 6 - 8 W E 20 Y U
