The decision tree can be found as Figure 11.3 on page 201. In textbook, value of information of the market size is calculated. There is another important uncertainty market shar

Calculate the value of perfect information of the market share.

Suppose the company can do a test to assess the market share. This test would be 60% accurate in detecting a high (0.25) market share, 75% accurate in detecting a base (0.20) market share, and 80% in detecting a low (0.15) market share. Calculate the value of imperfect information of this test.

Mkt Share= 0.25 $4,251,090 Mkt Share= 0.20d $3,237,230 Mkt Share = 0.15 $2,223,380 Mkt Share = 0.251 $1,716,450 ev= $1,209,530,1 Mkt Share-0.20, d $1,209,530 Mkt Size-2,000,000 0.25 ev = $3,237,240 m/ 0.25 0.50 0.25 Launch ev = $1,310,910 Mkt Size = 1 ,000,000 0.25 ,1) 0.50 0.50 Mkt Share = 0.15 0.25 Mkt Share 0.25 0.25 . Alkt Share= 0.20 $702,600 ($311,250) ($412,640) ($514,030) $1,135,180 Mkt Size = 200,000 eVE ($412,640) 0.25 0.50 Mkt Share = 0.15 0.25 License Sell $320,450 Mkt Share= 0.25 $4,251,090 Mkt Share= 0.20d $3,237,230 Mkt Share = 0.15 $2,223,380 Mkt Share = 0.251 $1,716,450 ev= $1,209,530,1 Mkt Share-0.20, d $1,209,530 Mkt Size-2,000,000 0.25 ev = $3,237,240 m/ 0.25 0.50 0.25 Launch ev = $1,310,910 Mkt Size = 1 ,000,000 0.25 ,1) 0.50 0.50 Mkt Share = 0.15 0.25 Mkt Share 0.25 0.25 . Alkt Share= 0.20 $702,600 ($311,250) ($412,640) ($514,030) $1,135,180 Mkt Size = 200,000 eVE ($412,640) 0.25 0.50 Mkt Share = 0.15 0.25 License Sell $320,450