Please correct answer and don't use hand NYX Cosmetic has built business plans for Black Friday. Based on current market demand, Nyxhas designed 4 plans for 4 different main cosmetic products, including the expected profitthat each plan brings in each situation and the probability of demand in each market, shown inthe table below.States of natureAlternatives1234Foundations-$10$150$250$200Lipsticks$300$100$200-$20Eyeliners$150$200$250$100Blusher$200$100-$50$150Probabilities0.30.20.250.3RieMarr is a market demand research company, offering NYX precise data with a price of $80.Should NyX buy that data? Why?Yes, because the expected value of perfect information is $85.No, because RieMarr's data price is $10 higher than the expected value of perfect information.Yes, because the expected value of perfect information is $5 higher than RieMarr's data price.No, because the expected value of perfect information is $5 lower than RieMarr's data price.

Calculate Expected Value for Each AlternativeMultiply each profit by its state probability and sum…

Answered: NYX Cosmetic has built business plans…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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