Question: A decision tree is created to help make a decision pertaining to the introduction of a new product to the market. Included in the tree
A decision tree is created to help make a decision pertaining to the introduction of a new product to the market. Included in the tree is the decision of whether or not to purchase a market research study that will make predictions on market response to the new product. For this decision tree, EVI = $1,200 and EVPI = $2,200. Select the most accurate statement.
A. If the cost of the study is less than $2,200, then it is optimal purchase the study.
B. If the cost of the study is more than $2,200, then it is optimal purchase the study.
C. If the cost of the study is $1,000, then it is optimal to purchase the study.
D. If the cost of the study is $0, then it is optimal to purchase the study, and if the cost of the study is more than $0, then it is not optimal to purchase the study
E. If the cost of the study is more than $1,200, then it is optimal purchase the study.
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