A Company Wants to Add a New Product to Its

question 54

Essay

A company wants to add a new product to its existing line of products.There are two similar candidate products,A and B.The demand for the new product could be high,medium,or low,with probabilities of .25,.5,and .25,respectively.The demand and the corresponding profit for each product is:
$$\begin{array} { | l | l | l | l | } \hline & \text { High } & \text { Medium } & \text { Low } \\\hline \text { Product A } & 40,000 & 30,000 & 20,000 \\\hline \text { Product B } & 70,000 & 20,000 & 0 \\\hline\end{array}$$

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Definitions:

Predict

To foretell or estimate the likelihood of a future event or trend based on current knowledge or analysis.

Encoding

The process of converting information into a form that can be communicated or processed.

Symbolic Form

The representation of ideas, principles, or phenomena through symbols rather than explicit or direct forms.

Filters

Mechanisms or processes that screen, sort, or present information according to certain criteria, often used to manage information overload or enhance relevance.