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Urgent pls need working The Super Cola is also considering the introduction of a root beer drink. The company thinks the probability that the product
Urgent pls need working
The Super Cola is also considering the introduction of a root beer drink. The company thinks the probability that the product will be a success is 0.6. The payoff table is as follows: Produce (d) Do not produce (d2) Success (si) $250,000 - 50,000 Failure (32) -$300,000 20,000 The company has a choice of two research firms to obtain information for this product. Stanton Marketing has market indicators 11 and 12 for which P(1. s) = 0.7 and P(1) | S2) = 0.4. New World Marketing has indicators 11 and 12 for which P( ISI) = 0.6 and P( IS2) = 0.3. a. What is the optimal decision if neither firm is used? Over what probability of success range is this decision optimal? b. What is the EVPI? c. Find the EVSIs and efficiencies for Stanton and New World. d. If both firms charge $5,000, which firm should be hired? If Stanton charges $10,000 and New World charges $4000, which firm should Super Cola hireStep by Step Solution
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