A Homework MGT$407-2020$

$1.$ Howard Weiss, Inc. is considering building a sensitive new radiation scanning device. His managers believe that there$$s a probability of $0\mathrm{.}4$ that the ATR company will come out with a competitive product. If Weiss adds an assembly line for the product and ATR company does not follow with a competitive product, Weiss$$s expected profit is $$60,000.$ If Weiss adds an assembly line and ATR follows suit Weiss still expects $$17,000$ profit. If Weis adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $$700,000$ If ATR does compete for this market, Weiss expects a loss of $$100,000.$

NOTES: Remember to include a do nothing option. If the Prob $($competitive product$)=\mathrm{.}4,$ then the Prob $($no competitive product$)=\mathrm{.}6.$

a$.$ Determine the EMV of each decision

b$.$ Compute the expected value of perfect information