N 50 Which of the following statements is true of test marketing? A. The amount of test marketing needed remains constant for each new product. B. When the costs of developing and introducing the product are low, the company will have to do significant test marketing. C. Test marketing is seldom done on products that are risky. D. Test marketing is seldom done when management is not sure of the product or its marketing program. E. Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?