[1-ITEM] Instructions: Kindly provide the correct and complete solution. (I will DISLIKE your solution if it is incorrect/incomplete)

1. Procter, president of a food company, must decide whether to market a new breakfast drink which the R and D division has developed. A special meeting devoted to this topic yields the following information: The marketing vice-president has defined two possible outcomes for the success of this product; either the public will accept the product, or it will not. She believes that the product will be accepted with probability 0.1. The cost engineers believe that if the product is marketed and accepted, the company will net $100,000 yearly. If the product is rejected, however, the company will suffer a net loss of $20,000 yearly. If Procter decides not to market the product, her company will neither accrue more cost nor make any profit on this product. Procter always makes decisions based on the expected value of the outcomes. A. What is the best strategy in this case? B. Compute for EVPI. Before she can implement the strategy found in part (A), the marketing VP informs Proctor that she has developed a market test for the product. She proposes to test a sample population to determine its preference for the breakfast drink. Based on histories of similar tests, she estimates that the sample population would not accept the drink with probability 0.2, when in fact the product would be accepted by the general public. She also believes that one time in forty, the drink would be accepted by the public when the test group rejects it. Finally, she informs Procter that the probability that the public accepts the drink when the test group accepts is 0.4. C. Determine the best strategy by performing a decision tree analysis. D. How much is the expected cost of the market test