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Part $1$

Howard$$ Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a

probability of

$0\mathrm{.}450\mathrm{.}45$

that the ATR Co$.$ will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Co$.$ does not follow with a competitive$$ product, Weiss's expected profit is

$ $40$ comma $000$$$40,000$;

if Weiss adds an assembly line and ATR follows$$ suit, Weiss still expects

$ $20$ comma $000$$$20,000$

profit. If Weiss adds a new plant addition and ATR does not produce a competitive$$ product, Weiss expects a profit of

$ $600$ comma $000$$$600,000$;

if ATR does compete for this$$ market, Weiss expects a loss of

$ $80$ comma $000$$$80,000.$

Part $2$

$$a$)$ Expected value for the

Add Assembly LineAdd$$Assembly$$Line

option$=$

$$$enter your response here

$($enter your answer as a whole$$ number$).$

Part $3$

Expected value for the

Build New PlantBuild$$New$$Plant

option$=$

$$$enter your response here

$($enter your answer as a whole$$ number$).$

Part $4$

The alternative that provides Weiss the greatest expected monetary value

$($EMV

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$)$

is

$$

$$

Add Assembly Line

Build New Plant

$.$

Part $5$

The value of the return under this decision is

$$$enter your response here

$($enter your answer as a whole$$ number$).$

Part $6$

$$b$)$ The expected value of perfect information

$($EVPI

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$)$

for Weiss$=$

$$$enter your response here

$($enter your answer as a whole$$ number$).$ Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a probability of $0\mathrm{.}45$ that the ATR Co$.$ will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Co$.$ does not follow with a competitive product, Weiss's expected profit is $\backslash (\backslash$$ $40,000\backslash )$; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $\backslash (\backslash$$ $20,000\backslash )$ profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $\backslash (\backslash$$ $600,000\backslash )$; if ATR does compete for this market, Weiss expects a loss of $\backslash (\backslash$$ $80,000\backslash ).$

a$)$ Expected value for the Add Assembly Line option $=\backslash$$ $($enter your answer as a whole number$).$

Expected value for the Build New Plant option $=\backslash$$ $($enter your answer as a whole number$).$

The alternative that provides Weiss the greatest expected monetary value $($EMV$)$ is

The value of the return under this decision is $\backslash (\backslash$$ $\backslash )$

$($enter your answer as a whole number$).$

b$)$ The expected value of perfect information $($EVPI$)$ for Weiss $=\backslash$$

$($enter your answer as a whole number$).$