The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market​ it, sales should increase by ​$60,000. If it is not better and they replace the old product with the new product on the​ market, they will lose ​$25,000 to competitors. If they decide not to market the new​ product, they will lose a total of ​$50,000 if it is better and just research costs of ​$20,000 if it is not. Answer parts a through c below. ​(a) Prepare a payoff matrix.   Start 2 By 2 Table 1st Row 1st Column 60000 2nd Column negative 25000 2nd Row 1st Column negative 50000 2nd Column negative 20000 EndTable   60000 −25000   −50000 −20000 ​(Type an integer or decimal for each matrix element. Do not include the​ $ symbol in your​ answer.) ​(b) If management believes there is a probability of 0.4 that the new product is​ better, find the expected profits under each strategy and determine the best action. Select the correct answer below and fill in the answer boxes to complete your choice. ​(Type integers or​ decimals.)   A. The expected profits are ​$nothing if they market the product and ​$nothing if they do not. They should not market the product because they will earn more if they do not.   B. The expected profits are ​$nothing if they market the product and ​$nothing if they do not. They should not market the product because they will lose less if they do not.   C. The expected profits are ​$nothing if they market the product and ​$nothing if they do not. They should market the product because they will earn more if they do so.   D. The expected profits are ​$nothing if they market the product and ​$nothing if they do not. They should market the product because they will lose less if they do.

The Transit Authority (TA)in a metropolitan area operates a subway line that currently carries an average of 6000 passengers per day commuting between the suburbs and downtown. The fare now is $3.00 per ride and the board of the TA is considering raising its price by $0.50 to generate a larger revenue. A study reveals that for each $0.50 increase in fare, the ridership will be reduced by an average of 1000 passengers per day. Using this study, the board determines that, to get maximum profit, the price of the ticket should remain at $3.00. Is this correct? Explain why or why not.

Paisley’s Pâwtisserie and its popular dog treats grew faster than you expected. And just as you contemplated leaving your full-time job to turn your hobby into a career, something serendipitous happened. Your friend put his coffee bar up for sale. You contemplated buying his space, serving coffee and pastries upfront, and having the “barkery” in the back. With only you and the part-time baker, you would clearly need more staff. What would a new organizational structure look like? Without committing to any changes while you were still a full-time employee, you took the opportunity to sketch the roles that would eventually need to be filled. Thinking through your vast network, you imagined a few people you could slot in if you were granted the ideal staff. You, as owner and president, ended up with the following potential hires along with their roles: Aliyah, general manager; James, sales and marketing director; Sofia, office manager; Alejandro, bar manager; Cheri, chef and kitchen…

Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea.  Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)."12 What is the slope, including units, of the model for DVD sales?         Write a statement interpreting the meaning of the slope in the context of the problem.

Store A and Store B compete for the business of the same customer base.  Store A has 55% of the business and Store B has 45 %. Both companies intend to expand to increasse their market share.  If both expand, or neither expand, they expect theri market share to remain the same.  If Store A expands and Store B does not, the Store A"A share increases to 65%.  If Store B expands and Store A  doesnt, then Store A's share drops to 50%.  Determine which strategy, to expand or not, each company should take.

The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market it, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $25,000 to competitors. If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Complete parts (a) and (b) below. (a) Prepare a payoff matrix. □ (Type an integer or decimal for each matrix element. Do not include the $ symbol in your answer.)

A financial manager has to invest $ 200000 in two options, one risky with a return of 20% and second less risky with a return of 10% per year. If the goal is to make $ 32000 at the end of the year what should be distribution of the money in both options.

Elaine Benes is considering three possible ways to invest the $200,000 she has just inherited. Some of Elaine’s friends are considering financing a combined laundromat, video-game arcade, and pizzeria, where the young singles in the area can meet and play while doing their laundry. This venture is highly risky and could result in either a major loss or a substantial gain within a year. Elaine estimates that the chances of losing all the money (i.e. loss of $200,000) are 47%, while the chances of making a $200,000 profit are 53%. Elaine can invest in some new apartments that are being built in town. Within 1 year, this fairly conservative project will produce a profit of at least $10,000, but it might yield $20,000 or even $30,000. Elaine estimates the probabilities of these yields at 20%, 50%, and 30% respectively. Elaine can invest in some private securities that have a current yield of 5%.  Construct (draw) a decision tree for Elaine to determine which investment will maximize her…

CGI Inc. is developing a new software​ platform, which requires an immediate investment of ​$780,000 and another ​$260,000 in three years. Net returns expected are ​$450,000 after two​ years, ​$313,000 after four​ years, and ​$889,000 after six years.​ However, if they simply upgrade their current​ platform, it requires an immediate investment of ​$400,000​, another ​$260,000 after two​ years, and ​$340,000 after four years. Net returns are ​$187,500 per year for 8 years. The rate of interest is​ 6.9%. Which project is preferable according to the net present value​ / IRR criterion?

Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea.  Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)." What is the slope, including units, of the model for streaming videos?