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Mathematics, 06.05.2021 22:20 fsugg9168
Mary is considering opening a new grocery store in town. She is evaluating three sites: downtown, the mall, and out at the busy traffic circle. Mary calculated the value of successful stores at these locations as follows: downtown, $250,000; the mall, $300,000; the circle, $400,000. Mary calculated the losses if unsuccessful to be $100,000 at either downtown or the mall and $200,000 at the circle. Mary figures her chance of success to be 50% downtown, 60% at the mall, and 75% at the traffic circle
Required:
a. Draw a decision tree for Mary and select her best alternative.
b. How much is the marketing research worth to Mary? Calculate the EVSI.
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Answers: 1
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Mary is considering opening a new grocery store in town. She is evaluating three sites: downtown, th...
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