Business, 15.08.2020 17:01 bhaven2005

A company is considering whether to market a new product. Assume, for simplicity, that if this product is marketed, there are only two possible outcomes: success or failure. The company assesses that the probabilities of these two outcomes are 0.4 and 0.6, respectively. If the product is marketed and it proves to be a failure, the company will lose $450,000. If the product is marketed and it proves to be a success, the company will gain $760000. The company is also considering whether to survey prospective buyers of this new product. The results of the consumer survey can be classified as favorable, neutral, and unfavorable. In similar cases where proposed products proved to be market successes, the likelihoods that the survey results were favorable, neutral, and unfavorable were 0.6, 0.3, and 0.1, respectively. In similar cases where proposed products proved to be market failures, the likelihoods that the survey results were favorable, neutral, and unfavorable were 0.1, 0.2, and 0.7, respectively. The total cost of administering this survey is C dollars. Finish the decision tree for this problem and answer the following questions: Partial Tree a) What is the optimal decision(s)

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A company is considering whether to market a new product. Assume, for simplicity, that if this produ...

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