Joyce is the director of manufacturing for Titan Industries, which is considering building a new facility in
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Joyce can hire a market research firm to conduct a survey to better ascertain the demand for this product. The cost of the survey is $ 20,000. If the market has strong demand for the product, the probability that the survey will predict a strong demand is 80%. If the market has a weak demand for the product, the probability that the survey will predict a strong demand is 35%.
a. Choose the best course of action for Joyce under these conditions.
b. What is the most that Joyce should pay for the survey?
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