Mark M$.$ Upp has just been fired as the university bookstore manager for setting prices too low $($only $20$ percent above suggested retail$).$ He is considering opening a competing bookstore near the campus, and he has begun an analysis of the situation.$$ There are two possible sites under consideration.$$ One is relatively small, while the other is large.$$ If he opens at Site $1$ and demand is high, he will generate a profit of $$50,000.$ If demand is low, he will lose $$10,000.$ If he opens at Site $2$ and demand is high, he will generate a profit of $$80,000,$ but he will lose $$30,000$ if demand is low.$$ He also has the option of not opening either.$$ He believes that there is a $50$ percent chance that demand will be high.$$ Mark can purchase a market research study. The probability of a good demand given a favorable study is $0\mathrm{.}8.$ The probability of a good demand given an unfavorable study is $0\mathrm{.}1.$ There is a $60$ percent chance that the study will be favorable.

The above problem context is for this question and the next a few questions in the same title.$$

What is Mark's maximum EMV with the market research study?

Question $19$ options:

a$)$

$$25000$

b$)$

$$33200$

c$)$

$$34800$

d$)$

$$58000$

e$)$

None of the above

Question $20($Mandatory$)(10$ points$)$

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If the market research study costs $$5000$ should Mark use the study?

Question $20$ options:

a$)$

Yes.$$

b$)$

No$.$

c$)$

Uncertain. It depends on whether the demand is high or low

d$)$

None of the above

Question $21($Mandatory$)(10$ points$)$

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If Mark paid $$5000$ for the market research study and that the study result is unfavorable what should Mark do$?$

Question $21$ options:

a$)$

Do not open either site.

b$)$

Open Site $1$

c$)$

Open Site $2$

d$)$

Regret for taking the study

Question $22($Mandatory$)(10$ points$)$

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What is the maximum amount Mark should be willing to pay for this study?$$

Question $22$ options:

a$)$

$$5000$

b$)$

$$9800$

c$)$

$$20000$

d$)$

$$25000$

e$)$

None of the above