The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable) will determine the profit or loss the company realizes, as shown in the following payoff table: Market Conditions Favorable Stable Unfavorable Product 2 7 W1 Widget $120.000 $70,000 $ 30,000 Hummer $60,000 $40,000 $20,000 Nimnot $35,000 $30,000 $30,000 Using EMV and EOL approach, which product they should introduce? Also calculate Expected Value of Perfect Information (EVPI).
Extracted text: The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable) will determine the profit or loss the company realizes, as shown in the following payoff table: Market Conditions Favorable Stable Unfavorable Product .2 .7 .1 Widget $120,000 $70,000 $ 30,000 Hummer $60,000 $40,000 $20,000 Nimnot $35,000 $30,000 $30,000 Using EMV and EOL approach, which product they should introduce? Also calculate Expected Value of Perfect Information (EVPI).