8 A pharmaceutical company is developing a new vaccine. If company markets the vaccineand it is successful, it will earn a $40,000 profit; if it fails, the company will lose $25,000. In thepast, the success rate of similar products has been around 45%. An R&D study on effectivenesscan be carried out at an additional cost of $4,000. If the study result is favorable, there is an 85%chance that the vaccine will be successful. If not, there is only a 20% chance that the productsucceeds in the market. The management believes that study will yield a favorable result with55% possibility. Determine company's optimal strategy by building a decision tree and find theexpected value of sample information (EVSI) as well as expected value of perfect information(EVPI).

Expected value = Output value × ProbabilityExpected value of sample information (EVSI) = EVWSI -…

Answered: A pharmaceutical company is developing…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The Nitro Fertilizer Company is developing a newfertilizer. If Nitro markets the product and it is successful,the company will earn a $50,000 profit; if it is unsuccessful,the company will lose $35,000. In the past, similar productshave been successful 60% of the time. At a cost of $5,000,the effectiveness of the new fertilizer can be tested. If thetest result is favorable, there is an 80% chance that thefertilizer will be successful. If the test result is unfavorable,there is only a 30% chance that the fertilizer will besuccessful. There is a 60% chance of a favorable test resultand a 40% chance of an unfavorable test result. DetermineNitro’s optimal strategy. Also find EVSI and EVPI.
Which of the following items influences healthcare prices? ✔ All of the answers are correct. Market share. Quality of care. Payer mix.
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Post Covid-19 will inevitably change the expectations of the customer in relation to restaurant service. Watch the advertisement ( https://www.youtube.com/watch?v=QX64tBjRkwM&t=11s) of the country’s number one fast food chain, Jollibee in going beyond the extra mile to ensure the safety of its customers while continuing to deliver quality food and service. Read also reopening guidelines of hotels and restaurants in Florida, USA and react whether the guidelines can be applied to the establishments in our country. In your opinion and observation, what are the "now normal" strategies in the restaurant service? How did the staff interact with the guest?
One of your company’s products is put into the market and soon found having some quality defects. How do you organize market data (and what kind of data) to evaluate the effect and cost of the quality defects to this model of the product and to the company?
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Every parent’s fear when putting an infant to sleep is Sudden Infant Death Syndrome (SIDS)—the sudden unexplainable death of an otherwise healthy baby. In the United States, about 2,000 infants die each year of SIDS, the third leading cause of infant death. For $199, parents can buy monitors that track babies’ vital signs, such as respiration, heart rate, skin temperature, sleeping position, and quality of sleep. The Mimo Smart Baby Monitor is a cute clip-on turtle that attaches to a special organic cotton onesie, and the Owlet Baby Monitor is a smart sock that looks like a little toeless boot. If parents don’t want to attach these devices on their little ones, they can opt for the SafeToSleep Breathing Monitor sheet with a built-in monitor. All of these devices stream data to parents’ smartphones. Manufacturers of these devices promote them to parents for “your baby’s health” or to give “that extra assurance” to protect against SIDS. However, several government agencies such as the…
identify dependent and independent variables in this statement "We asked first 600 and then 1000 customers to think of a brand/product/service they loved and they disliked. We then asked them to write a divorce letter to the disliked brand and a love letter to the brand they admired, and to score these two brands on a scale from 1 to 10. In this way, we had a benchmark for the perception of the loved and the disliked brands."
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