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Melissa Rossi, Product Manager at National Consumers, Inc \quad \quad

Question 69

Multiple Choice

Melissa Rossi, Product Manager at National Consumers, Inc.(NCI) , is evaluating alternatives for introducing a new package for toothpaste.She has identified four alternative markets, and has constructed the following table which shows NCI's rewards (in $1,000,000's) for various levels of acceptance by the markets and their probabilities. \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad  Market Acceptance \text { Market Acceptance } Market  Low (.3)   Medium (.4)   High (.3)   Northeast Only 0.701 Southeast Only 0.20.20.8 National 1.50.22 None (don’t introduce the new package)  000\begin{array}{|c|c|c|c|} \hline \text { Market } & \text { Low (.3) } & \text { Medium (.4) } & \text { High (.3) } \\\hline \text { Northeast Only } & -0.7 & 0 & 1 \\\hline \text { Southeast Only } & -0.2 & 0.2 & 0.8 \\\hline \text { National } & -1.5 & -0.2 & 2 \\\hline \text { None (don't introduce the new package) } & 0 & 0 & 0\\\hline \end{array}

The expected monetary payoff with perfect information is ________.


A) $570,000
B) $680,000
C) $760,000
D) $830,000
E) $980,000

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