ODL-DSBA Operations Research & Optimization

With reference to the exercise completed in class:

A company is deciding whether to develop and launch a new product. Research and development costs are expected to be $400,000 and there is a 70% chance that the product will be successful. If it is successful, the expected revenue and the probability of each occurring have been estimated as follows, x, y, and z respectively depending on whether the product’s popularity is high, medium, or low.  Set a range of values for x,y, and z and analyze the consequence of its impact on the net profit for each possible scenario and action.