Your company has developed a new energy drink and you are trying to decide whether...
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Your company has developed a new energy drink and you are trying to decide whether to sell the recipe, or make and distribute it yourself. A company will pay you $ million for the recipe. If your company makes the drink itself, it will cost $ million to build a factory and distribution network. Your analytics and marketing teams tell you there is a chance the market response will be great, a chance the market response will be decent with gross earnings of $ million, and a chance the market response will be poor with gross earnings of $ million. If the market response is great, there is a chance the drink will be the new fad and you will make gross earnings of $ million, a chance the gross earnings will be $ million, and a chance the gross earnings will be $ million. What is the expected value from the Perfect Information Tree just the perfect information tree, not EVPI Please write your answer in units of $millions, and round to decimal places. For example, if the answer is you enter it as
Your company has developed a new energy drink and you are trying to decide whether to sell the recipe, or make and distribute it yourself.
A company will pay you $ million for the recipe.
If your company makes the drink itself, it will cost $ million to build a factory and distribution network.
Your analytics and marketing teams tell you there is a chance the market response will be great, a chance the market response will be decent with gross earnings of $ million, and a chance the market response will be poor with gross earnings of $ million.
If the market response is great, there is a chance the drink will be the new fad and you will make gross earnings of $ million, a chance the gross earnings will be $ million, and a chance the gross earnings will be $ million.
What is the expected value from the Perfect Information Tree just the perfect information tree, not EVPI
Please write your answer in units of $millions, and round to decimal places. For example, if the answer is you enter it as
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