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The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market it, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $25,000 to competitors. If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Complete parts (a) and (b) below. (a) Prepare a payoff matrix. (Type an integer or decimal for each matrix element. Do not include the $ symbol in your answer.)

The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market it, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $25,000 to competitors. If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Complete parts (a) and (b) below. (a) Prepare a payoff matrix. (Type an integer or decimal for each matrix element. Do not include the $ symbol in your answer.)

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market it, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $25,000 to competitors. If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Complete parts (a) and (b) below. (a) Prepare a payoff matrix. □ (Type an integer or decimal for each matrix element. Do not include the $ symbol in your answer.)
Transcribed Image Text:The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market it, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $25,000 to competitors. If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Complete parts (a) and (b) below. (a) Prepare a payoff matrix. □ (Type an integer or decimal for each matrix element. Do not include the $ symbol in your answer.)
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