Listerine Lozenges (Revised‪)‬

A pharmaceutical house is considering introducing a throat lozenge on the market and is undecided about whether to conduct a test market and whether to order manufacturing equipment now or later. Probability assessments are given, permitting the use of a decision tree. Also possible are considerations of the value of information. (A Microsoft Excel model is available for use with this case, product 7A99E016.)