Zhu Manufacturing is considering the introduction of a family of new products.​ Long-term demand for the product group is somewhat​ predictable, so the manufacturer must be concerned with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom​manufacturing, or she can invest in group technology. Zhu​ won’t be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four​ compartments: poor,​ fair, good, and excellent. The table below indicates the payoffs​ (profits) associated with each​ process/demand combination, as well as the probabilities of each​ long-term demand​ level:                                                                                                                                            Demand Poor Fair Good Excellent Probability 0.15 0.40 0.25 0.20 BatchBatch −$300,000 $1,200,000 $1,100,000 $1,200,000 CustomCustom $200,000 $250,000 $700,000 $700,000 Group technologyGroup technology −$1,250,000 −$600,000 $500,000 $2,000,000 ​a) The alternative that provides Zhu the greatest expected monetary value ​(EMV​) is ▼Group technology Custom Batch . The EMV for this decision is $?​(enter your answer as a whole​ number). ​b) The amount that Faye Zhu would be willing to pay for a forecast that would accurately determine the level of demand in the future​ = $?​(enter your answer as a whole​ number).

Zhu Manufacturing is considering the introduction of a family of new products.​ Long-term demand for the product group

is somewhat​ predictable, so the manufacturer must be concerned with the risk of choosing a process that is inappropriate. Faye Zhu is VP of operations. She can choose among batch manufacturing or custom​manufacturing, or she can invest in group technology. Zhu​ won’t be able to forecast demand accurately until after she makes the process choice. Demand will be classified into four​ compartments: poor,​