Question: Audiotronics is considering whether to introduce its new bluetooth speaker to one of two international markets, both, or neither. Market development and product introduction costs
Audiotronics is considering whether to introduce its new bluetooth speaker to one of two international markets, both, or neither. Market development and product introduction costs are $173k in Market 1 and $173k in Market 2. The total cost of introduction is the sum of the two if introducing in both markets. No costs are incurred if introducing the product in neither market. The revenue earned for each strategy depends on the state of the global economy as provided in the following table. The probability the economy is strong is 0.2; the probability the economy is weak is 0.2; otherwise, the economy is fair.
State of the Economy
| Revenue in ($k) | Strong | Fair | Weak |
| None | $0 | $0 | $0 |
| Market 1 only | $455 | $244 | $159 |
| Market 2 only | $455 | $244 | $176 |
| Both markets | $868 | $406 | $234 |
Calculate the EMV (expected monetary value) for both all 4 options and enter the EMV for the best option. Enter your answers in thousands of dollars rounded to one decimal place (e.g. 845,163 should be entered as 845.2)
Answer:
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