Question: MULTI-STAGE: PLEASE JUST HELP BUILD SPREADSHEET FOR AND SHOW FORMULAS PLEASE THANK YOU! PLEASE SHOW DECISION TREE! Dr. Dorado has formed a research consortium with
Dr. Dorado has formed a research consortium with scientists and engineers for the USA and Switzerland tasked with taking advantage of rapidly developing advances in biomaterials to develop the next generation Swiss-American Replacement Ankle System (SARAS). While the development of SARAS will take some time, a decision must be made now whether to incorporate plans for the eventual manufacture of SARAS in the current manufacturing process decision. Dr. Dorado realizes that it will only make sense to manufacture the SARAS system if there continues to be a high demand for ankle replacement as reflected by the number of Slip-In system surgeries performed. He is fully aware that since SARAS is still under development there is a risk that it will not work as anticipated, but estimates that the probability of that happening is only 20%. If it performs as anticipated, they expect to get an additional $4.7 in payoff. Otherwise, they will see a decrease of $2 in their payoff. One option available is for him to request (and pay for) an impartial peer review of his team's research on SARAS to see if it can assess whether his team's research has followed sound principles. Published results show that 90% of successful research projects that were peer reviewed at early stages were deemed to be following sound principles. Similarly, 90% of failed research projects that were peer reviewed at early stages were deemed not to be following sound principles. What should Dr. Dorado's decision strategy be for including SARAS in the manufacturing process he will select
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
