a) Expected value for the Add Assembly Line option = $________(enter your answer as a whole number).

Part 3

Expected value for the Build New Plant option = $_______(enter your answer as a whole number).

Part 4

The alternative that provides Weiss the greatest expected monetary value (EMV) is _________

Build New Plant?

.Part 5

The value of the return under this decision is $_______ (enter your answer as a whole number).

Part 6

b) The expected value of perfect information (EVPI) for Weiss = $____(enter your answer as a whole number).

Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a probability of 0.40 that the ATR Co. will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Coes not doem with a competitive product, Weiss's expected profit is $50,000; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $20,000 profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $600,000; if ATR does compete for this market, Weiss expects a loss of $80,000