Question: Using Bayesian Decision Theory, solve the problem presented below. The purpose of this is to deepen your understanding of the Value of Research issue. Quicken
Using Bayesian Decision Theory, solve the problem presented below. The purpose of this is to deepen your understanding of the "Value of Research" issue.
Quicken Business Software is considering introducing a new product, the midmarket SalesMgrPro. If the product is a big success, Quicken will make an extra $ million in profit and a failure will result in a loss of $ million. Not introducing this product will not change Quicken's profit from what it is today. The probability of each outcome is estimated at: big success failure Quicken's marketing manager is considering doing a concept test before making the decision. She knows that the test is not accurate, in fact she knows from previous experience that for successful products the concept test approach is positive and for failure products the test is negative. a If she does not do marketing research, should Quicken introduce SalesMgrPro, and why? b Should Quicken introduce without research, not introduce without research, or conduct the concept test? c What is the maximum amount the marketing manager should spend on the concept test?
For this question, you can draw the decision tree manually and scan it
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