The ABC Co

question 9

Essay

The ABC Co.is considering a new consumer product.They believe there is a probability of 0.4 that the XYZ Co.will come out with a competitive product.If ABC adds an assembly line for the product and XYZ does not follow with a competitive product, their expected profit is $40,000; if they add an assembly line and XYZ does follow, they still expect a $10,000 profit.If ABC adds a new plant addition and XYZ does not produce a competitive product, they expect a profit of $600,000; if XYZ does compete for this market, ABC expects a loss of $100,000.
(a)Determine the EMV of each decision.
(b)Determine the EOL of each decision.
(c)Compare the results of (a)and (b).
(d)Calculate the EVPI.

---

Definitions:

Traditional Family

A social unit consisting typically of parents and their children, where the parents are usually married and follow conventional roles.

Domestic Abuse

Patterns of abusive behavior in any relationship that are used by one partner to gain or maintain control over another intimate partner, encompassing physical, sexual, emotional, economic, or psychological actions or threats.

Interactional Work

Involves the efforts people make in social situations to manage the impressions others have of them, often to maintain social norms or achieve personal goals.

Antimiscegenation Laws

Legislation that prohibits interracial marriage and sometimes interracial sexual relations.