only need help with D)

(b) Analyze the decision tree to determine the optimal decision strategy for the publishing coml/any. I Company should accept the manuscript, regardless of the review process. V' @ (c) If the manuscript review costs $15,000, what is your recommendation? I At a cost of $15,000, the publishing company should order the review process. V] @ (d) What is the expected value of perfect information? Do not round intermediate calculations. If required, round your answer to the nearest dollar. .1; 488 0 What does this EVPI suggest for the company? This EVPI suggests a better procedure for assessing the market potential for the textbook 9 be worthwhile if it costs less than EVPI. Embassy Publishing Company received a six-chapter manuscript for a new college textbook. The editor of the college division is familiar with the manuscript and estimated a 0.72 probability that the textbook will be successful. If successful, a profit of $750,000 will be realized. If the company decides to publish the textbook and it is unsuccessful, a loss of $275,000 will occur. Before making the decision to accept or reject the manuscript, the editor is considering sending the manuscript out for review. A review process provides either a favorable (F) or unfavorable (U) evaluation of the manuscript. Past experience with the review process suggests that probabilities P(F) = 0.7 and P(U) = 0.3 apply. Let s 1 = the textbook is successful, and s 2 = the textbook is unsuccessful. The editor's initial probabilities ofs 1 and s 2 will be revised based on whether the review is favorable or unfavorable. The revised probabilities are as follows: P(s 1|F) = 0.85 P(s 1|U) = 5/12 P(s 2|F) = 0-15 P(s 2|U) = 7/12