Blackbeard€™s Phantom Fireworks is considering introducing two new bottle rockets. The company can add both to the current line, neither, or just one of the two. The success of these products depends on consumers€™ reactions. These reactions can be summarized as good, P(S₁) = .30; fair, P(S₂) = .50; or poor, P(S₃) = .20. The company€™s revenues, in thousands of dollars, are estimated in the following payoff table.

a. Compute the expected monetary value for each decision.
b. What decision would you recommend ?
c. Develop an opportunity loss table.
d. Compute the expected opportunity loss for each decision.
e. Compute the expected value of perfect information.

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State of Nature Declslon s, Nelther Product 1 only 125 65 30 Product 2 only Both 105 60 30 220 110 40