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Unformatted text preview: c) Case 1: 60% probability Case 2: 50% probability In both cases we should implement, however with a lower p, the expected value decreases $165,000. d) increase by $3? The EV goes down to $240,000. However the new research team shouldn’t be hired but go ahead to produce the phones. 3) a) hw#4 EVwoSI= 1.014 EvwSI = 1.208 EVSI = 1.2081.104 = 0.194 Million b ) I would hire Mr. Leaze, since the net gain would be $184,000 after deducting the fees. 4) a) Yes, they should go ahead with publishing, since the expected profit is $70,000 b) Using Splus: c) Do not publish...
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 Fall '08
 VANES,C.
 Probability theory, net gain, new research team

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