choose a b c or d and fill in $ part a (b) If management believes there is a probability of 0.5 that the new product is better, find the expected profits under each strategy and determine the best action Select the correct answer below and fill in the answer boxes to complete your choice (Type integers or decimals) O A The expected profits are $ if they market the product and if they do not. They should market the product because they will lose less if they do. ara OB The expected profits are $ if they market the product and if they do not. They should not market the product because they will earn more if they do not OC. The expected profits are $ if they market the product and they do not. They should market the product because they will eam more if they do so. OD. The expected profits are $ if they market the product and they do not. They should not market the product because they will lose loss if they do not. (c) Find any dominated strategies. Select all that apply. A. Row 2 dominates row 1. C. Row 1 dominates row 2. E. There are no dominated strategies. B. Column 2 dominates column 1. D. Column 1 dominates column 2. O A. There is a saddle point; it is $ (Type an integer or a decimal. Do not include the $ symbol in your answer.) OB. There is no saddle point. Question Help ни The research department at a manufacturing company has developed a new process that it believes will result in an improved product Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to marketit, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $24,000 to competitors If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Answer parts a through cbelow. (a) Prepare a payoff matrix centi (Type an integer or decimal for each matrix element. Do not include the symbol in your answer) 30

Better Not Better 70,000 -24,000 - Rowl Not sell -60000 - 20,000/- Row2 Deee probability of selling p 9 to trochur is better b 4 they market sell the product, payoff 0.5 (70000) + 0.5(-24000) = 0.5x46000 = /23000 - Row I (Box 1) If they done sell. Upoyolta = 0.5(-60000) + 0.5C-20000) = 0.5% (-80000) - 40000) - Rowa (Box2) They should market the product the cause they will lose less. Hence, (A) ③ There're no dominated strategies. & saddle pt. let prob of being better =P 70000 p + 6 (-p) (-24000) = pl-60000)+(1-P)(-20000 = 13000op = (1-P) x 4000 = 4000 134 000 67 70,000(3) 5 (-24000) = -21194.29 - No saddle pt.(B) .

Choose a b c or d and fill in $ part a (b) If managem…

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Better Not Better 70,000 -24,000 - Rowl Not sell -60000 - 20,000/- Row2 Deee probability of selling p 9 to trochur is better

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