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1. RAJAH COMPANY IS GOING TO INTRODUCE ONE OF THE THREE NEW PRODUCTS. A,B AND C OR DO NOTHING AS THE MARKET CONDITION, (FAVOURABLE, STABLE OR UNFAVOURABLE) AFFECT THE PAY OFF OF THE PRODUCTS, THE COMPANY ESTIMATES THE FOLLOWING PAY OFF AND PROBABILIES product favourable stable un-favourable a 8,000 6,000 -5,000 5000 3,000 -1,200 C 7000 6,000 -1,000 do nothing probabilities 0.4 0.3 0.3 a) what is the decision under risk b) what is the expected value of perfect information please explain step by step (cheg)

1. RAJAH COMPANY IS GOING TO INTRODUCE ONE OF THE THREE NEW PRODUCTS. A,B AND C OR DO NOTHING AS THE MARKET CONDITION, (FAVOURABLE, STABLE OR UNFAVOURABLE) AFFECT THE PAY OFF OF THE PRODUCTS, THE COMPANY ESTIMATES THE FOLLOWING PAY OFF AND PROBABILIES product favourable stable un-favourable a 8,000 6,000 -5,000 5000 3,000 -1,200 C 7000 6,000 -1,000 do nothing probabilities 0.4 0.3 0.3 a) what is the decision under risk b) what is the expected value of perfect information please explain step by step (cheg)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. RAJAH COMPANY IS GOING TO INTRODUCE ONE OF THE THREE NEW PRODUCTS. A,B AND C OR DO NOTHING AS THE MARKET CONDITION, (FAVOURABLE, STABLE OR UNFAVOURABLE) AFFECT THE PAY OFF OF THE PRODUCTS, THE COMPANY ESTIMATES THE FOLLOWING PAY OFF AND PROBABILIES product favourable stable un-favourable a 8,000 6,000 -5,000 5000 3,000 -1,200 C 7000 6,000 -1,000 do nothing probabilities 0.4 0.3 0.3 a) what is the decision under risk b) what is the expected value of perfect information please explain step by step (cheg)
Transcribed Image Text:1. RAJAH COMPANY IS GOING TO INTRODUCE ONE OF THE THREE NEW PRODUCTS. A,B AND C OR DO NOTHING AS THE MARKET CONDITION, (FAVOURABLE, STABLE OR UNFAVOURABLE) AFFECT THE PAY OFF OF THE PRODUCTS, THE COMPANY ESTIMATES THE FOLLOWING PAY OFF AND PROBABILIES product favourable stable un-favourable a 8,000 6,000 -5,000 5000 3,000 -1,200 C 7000 6,000 -1,000 do nothing probabilities 0.4 0.3 0.3 a) what is the decision under risk b) what is the expected value of perfect information please explain step by step (cheg)
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