Tree $($iii$)$

$($b$)$ Analyze the decision tree to determine the optimal decision strategy for the publishing company.

Company should accept the manuscript, regardless of the review process.

$($c$)$ If the manuscript review costs $$15,000,$ what is your recommendation?

At a cost of $$15,000,$ the publishing company should order the review process.

$($d$)$ What is the expected value of perfect information? Do not round intermediate calculations. If required, round your answer to the nearest dollar. $ What does this EVPI suggest for the company?

This EVPI suggests a better procedure for assessing the market potential for the textbook less than EVPI.