Calculating expected value for decision

Assignment Help Basic Statistics
Reference no: EM1321984

Q1) Miramar Company is going to introduce one of 3 new products: a widget, a hummer, or a nimnot. Market conditions (favourable, stable, or unfavourable) will find out profit or loss the company realizes, as listed in following payoff table:


Market Conditions





















i) Calculate expected value for each decision and choose the best one.

ii) Find out how much firm would be eager to pay to a market research firm to gain better information about future market conditions

Q2) Test statistic for this hypothesis test must be:

a) t = 1.95

b) z = 1.95

c) t = 1.38

d) z = 1.38

Q3) Determine the critical value if alpha = 0.05?

a) z.05 = 1.645

b) z.05 = 1.960

c) t.05 = 6.314

d) t.05 = 12.706

Reference no: EM1321984

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