Question: McCleary Electronics Inc. seeks to ( a ) move forward immediately with a new TV design or ( b ) wait and ask their value
McCleary Electronics Inc. seeks to a move forward immediately with a new TV design or b wait and ask their value analysis consultant for an evaluation of the added value of such new TV design. Under the first option, McCleary expects to sell units for $ each with a likelihood of if they will be successful in sales, or only units for also $ per unit if the market has a likelihood of not being in their favor. Under the value analysis option McCleary expects to sell at $ per unit with a probability of or sell units at $ per unit with a probability of The value analysis consultant option b will cost McCleary an extra $ If they choose option a then the product design expected payoff will be $ Hint: draw a decision tree.
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