Super Cola is also considering the introduction of a root beer drink. The compan

Question

Super Cola is also considering the introduction of a root beer drink. The company feels that the probability that the product will be a success is .6. The payoff table is as follows:

Success (s1)

Failure (s2)

$250,000

-$300,000

-$ 50,000

-$ 20,000

The company has a choice of two research firms to obtain information for this product. Stanton Marketing has market indicators, I1 and I2 for which P(I1 | s1) = .7 and P(I1 | s2) = .4. New World Marketing has indicators J1 and J2 for which P(J1 | s1) = .6 and P(J1 | s2) = .3. Show or explain how you get your answer to each of the following.

Success (s1)

Failure (s2)

$250,000

-$300,000

-$ 50,000

-$ 20,000

Explanation / Answer

Super Cola is also considering the introduction of a root beer drink. The compan

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