A toy manufacturer has three different mechanisms (‘alternatives") that can be installed in a doll that it sells. The different mechanisms have different setup costs (overheads) and variable costs and, therefore, the overall profit from the dolls is dependent on the alternative chosen. The probability of each demand "state of nature", as well as the anticipated payoff for each decision alternative, is as follows.
Light Demand Moderate Demand Heavy Demand
Probability 0.1 0.3 0.6
Wind – up action $325,000 $190,000 $170,000
Pneumatic action $300,000 $420,000 $400,000
Electrical action -$600,000 $240,000 $800,000
Required:
(A) Which one of the three alternatives has the maximum Expected Monetary Value (EMV) and what is its value? Your answer should include two things:
1) the name of the best alternative AND 2) its EMV dollar amount.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.