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You are a Junior Marketing specialist at Modus BioSystems. Your boss Ishani Sinanan is Vice President, Marketing, and has asked you for your input on a difficult decision. Ishani is considering purchasing a booth at the next Canadian Biomedical Inventors Convention, but they are not cheap and are non-refundable. The conference is scheduled for 9 months from now but given the current Covid-19 pandemic there is no guarantee the convention will take place.
The event organizers have been clear, the $1500 booth purchase fee is non-refundable even if the convention is cancelled, so you have to help decide if it is worth the risk. After doing some research, you estimate about an 85% chance the event will take place. If the event takes place, you suspect a 70% chance that the new business Modus attracts could bring in $9,000 and a 30% it only brings in $500.
In your properly formatted memo to Ishani, include a few sentences (full sentences!) that explain the EV calculation you've done, as well as your recommendation on how Ishani can maximize expected value. Your memo may include numbers but should not include any mathematical formulas. As background information, be sure to also explain what the point of an EV calculation is and why you used it.
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