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Module 1 chp 7 problem 38 part b

Module 1 chp 7 problem 38 part b - trend in the national...

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the company has four options regarding these two proposed products: introduce neither product, introduce product 1 only, introduce product 2 only, or introduce both products. Research and development costs for products 1 and 2 are $180,000 and $150,000, respectively. Note that the first option entails no costs because research and development efforts have not yet begun. The success of these software products depends on the trend of the national economy in the coming year and on the consumers’ reaction to these products. The company’s revenues earned by introducing product 1 only, product 2 only, or both products in various states of the national economy are given below. The probabilities of observing a strong, fair, and weak
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Unformatted text preview: trend in the national economy in the coming year are 0.30, 0.50, and 0.20, respectively. given marketing opportunities. Informtion needed for problem bekow: Trend in national economy Techware data Strong Fair Weak Decision Introduce n $0 $0 $0 Introduce P$500,000 $260,000 $120,000 Introduce P$420,000 $230,000 $110,000 Introduce b$820,000 $390,000 $200,000 38. Techware Incorporated is considering the introduction of two new software products to the market. In particular B. Use PrecisionTree to identify the strategy that maximizes Techware’s expected net revenue from the...
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