Question: Vivid LLC is considering expanding their product line by adding a new brand of eyewear. They could earn $2,000,000 in profit if this brand is

Vivid LLC is considering expanding their product line by adding a new brand of eyewear. They could earn $2,000,000 in profit if this brand is successful or lose $850,000 if it fails. However, if they choose to not introduce the brand, there will be no effect on their earnings. The probability of the new product to be successful is 45%. Vivid can conduct some additional market research to help them make the decision, which will cost $140,000. The results of this research will help predict whether the brand is successful. In past analyses known successful products were predicted to succeed 85% of the time. On the other hand known failed products were predicted to fail 75% of the time.

Questions:

1. Enter the expected monetary value of this decision. Do not use dollar signs, commas, or decimals.

2. What is the most that Vivid would pay for the additional market research? Do not use dollar signs, commas, or decimals.

3. What is the most that Vivid would pay for any market research on their product? Do not use dollar signs, commas, or decimals.

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