The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot

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The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditins (favorable, stable, or unfavorable) will determine the prodit or loss the company realizes, as showing 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

1. a) Computer the expected value for each decision and select the best one.
2. b) Develop the opportunity loss table and compute the expected opportunity loss for each product.
3. c) Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions.