Y 6. Willie's TDys makes and sells a wide range of toys for young children. The company has developed a new remote-controlled. toy robot and is considering 4 different production plans. The potential protability of these plans depends on market conditions. The marketing department has identied four possible market scenarios and believes each has an equal chance of occurring (25% each). The protability of the four production plans depends on market conditions, in the following manner: Market Market Market Market Scenario 1 Scenario 2 Scenario 3 Scenario 4 Production Plan 1 l $100k $90k $30k l $20k l Production Plan 2 ' $30k $20k $100k | $90k Production Plan 3 $30k $150k $30k l $30k Production Plan 4 I $30k $30k ~ $30k l $150k ' So, if market scenario 1 occurs, then production plan 1 will generate $100k in prots, while production plans 2, 3 and 4 will generate $30k in prots. Similar interpretations apply far the other three market scenarios. a. Given the company's uncertainty about market conditions, what are the expected prots for each of the four production plans? I b. Suppose Willie's Toys can hire a consultant who can provide information the company can use to decide which production plan to implement. There are three potential consultants, and they differ in terms of the information they can provide: 0 Hannah can determine whether (i) Willie's Toys is facing market scenarios 1 or 3 (but can't determine the specic scenario between the two)a or (ii) Willie's Toys is facing market scenarios 2 or 4 (but can't determine the specic scenario between the two) 0 Julia can determine whether (i) Willie's Toys is facing market scenarios 1 or 4 (but can't determine the specic scenario between the two); or (ii) Willie's Toys is facing market scenarios 2 or 3 (but can't determine the specic scenario between the two) 0 Brynn can determine whether (i) Willie's Toys is facing market scenarios 1, 2, or 3 (but can't determine the specic scenario among the three)a or (ii) Willie's Toys is facing market scenario 4 Suppose all three consultants are willing to provide their respective information to Willie's Toys for free. If Willie's Toys can hire only one consultant, which consultant will Willie's Toys hire? Suppose Willie's Toys can hire Hannah m Julia (still for free). Are expected prots higher if Willie's Toys hires both Hannah and Julia compared to hiring only one of them
