Determine the best decision for Telecomp using expected value. The Dynamax Company si going ot introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions $($favorable$,$ stable, or unfavorable$)$ will determine the profit or loss the

company realizes, as shown in the following payoff table.

Market Conditions

product favorable stable unfavorable

widget $$160,000$ $$90,000-50,000$

hummer $70,00040,00020,000$

$45,00035,00030,000$

Compute the expected value for each decision and select the best one.

b$.$ Determine how much the firm would be willing ot pay ot a mar$-$

ket research firm to gain better information about future market concions.

c$.$ Assume that probabilities cannot be assigned to future market conditions, and determine the best decision using the maximax, maximin, minimax regret, and equal likelihood criteria.