Quantitative Analysis

Quantitative Analysis.

Quantitative Analysis A company is considering alternatives for improving profits: develop new products or consolidate existing products. If the company decides to develop new products, it can either develop several products rapidly or take time to develop a few products more thoroughly. If the company chooses to consolidate existing products, it can either strengthen the products to improve profits or simply reap whatever gains are attainable without investing more time and money in the products. Given: The œDecision Tree Chart provided in the attached Excel spreadsheet shows the predicted gains from each decision alternative described above. Gains depend on how the market reacts to the action taken by the company. The probability of each market reaction is shown on the decision tree. Note: When the files opens, enter your name and student ID in the respective boxes so the task questions and problems will populate the worksheet. If the attached template does not open or is missing information, please contact Ecare for assistance with opening the file. Task: Develop a response to the attached œDecision Tree Chart in which you do the following: A. Calculate the expected value for each of the four decision branches. 1. Explain how you reached your solutions in part A. B. Determine the decision alternative that has the most favorable total expected value. 1. Explain how you reached your determination in part B.

Quantitative Analysis

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