Question: A sporting goods store owner has the opportunity to purchase a lot of 50,000 footballs for $100,000. She can sell some or all by taking out mail order advertisement in a magazine. Each football will be sold for $6.00. The advertising costs is $25,000.00 and the mailing cost is $1.00 per football. She believes the demand schedule is as follows:

Demand p(demand)

10,000 .20

30,000 .50

50,000 .30

1. construct a payoff table for this problem
2. What decision should be made based upon EMV.

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document