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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 100 comma 000 units at $610 each, with a probability of 0.77 and a 0.23 probability of 70 comma 000 at $610. if, however, he uses the value analysis team (option b), the firm expects sales of 85 comma 000 units at $720, with a probability of 0.74 and a 0.26 probability of 70 comma 000 units at $720. value engineering, at a cost of $120 comma 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. therefore, option ▼ a b has the highest expected monetary value. (enter your responses as integers.)
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Macdonald products, inc., of clarkson, new york, has the option of (a) proceeding immediately with p...
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