Macdonald products, inc., of clarkson, new york, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo tv that has just completed prototype testing or (b) having the value analysis team complete a study. if ed lusk, vp for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 80 comma 00080,000 units at $510510 each, with a probability of 0.370.37 and a 0.630.63 probability of 65 comma 00065,000 at $510510. if, however, he uses the value analysis team (option b), the firm expects sales of 80 comma 00080,000 units at $720720, with a probability of 0.630.63 and a 0.370.37 probability of 65 comma 00065,000 units at $720720. value engineering, at a cost of $85 comma 00085,000, is only used in option
b. which option has the highest expected monetary value (emv)? the emv for option a is $ nothing and the emv for option b is $ nothing. the

The expected monetary value of option a is $35,980,500  and the Expected monetary value of option b is $53,519,000 .

We follow these steps to arrive at the emv.

Option A    

Probability - c             Price per unit -p                No. of units - n            n*p* c

    0.37                              510                               80000                15096000  

    0.63                              510                                65000                20884500

Expected Monetary Value                                                          35980500

Option B    

  Probability - c     Price per unit -p                   No. of units - n            n*p* c

     0.63                               720                                   80000                 36288000

      0.37                               720                                   65000                  17316000

Total                                                                                            53604000

Less: Value engineering cost                                                               -85000

Expected Monetary Value                                                            53519000

employers prefer to hire ingenious, resourceful people because ingenious people may be more liable to engage in unethical deportment as they can cerebrate outside of the box

none

explanation:

we're are the selections to pick from?