27.An employee has been asked to decide which machine to choose from four possibilities. The purchase and installation cost for each machine is identical. The decision tree below describes the conditions and expected values. Which machine to purchase? Machine A 111 O Machine D Machine B O Machine A Machine C Machine B Machine C Machine D Increase productivity $100,000 Increase productivity $50,000 Increase productivity $100,000 No increase in productivity Increase productivity $50,000 Increase productivity $25,000 Increase productivity $250,000 Decrease productivity $50,000 Probability 0.25 Probability 0.75 Probability 0.50 Probability 0.50 Probability 0.40 Probability 0.60 Probability 0.25 Probability 0.75 $62,500 $50,000 $35,000 5525,000 100,00 Which machine should this employee select to assure the board of directors that there is no likelihood of a reduction in productivity?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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48. Review the graphs below.
Review the graphs below:
8000
7000
6000
5000
4000
3000
2000
1000
0
8000
7000
6000
5000
4000
3000
2000
1000
0
January
January
Inventory Graph A
February
March
Inventory Graph C
11
February
A. Inventory graph B
B. Inventory graph A
C. Inventory graph D
D. Inventory graph C
April
March
April
Il
May
May
June
June
8000
7000
6000
5000
4000
3000
2000
1000
0
5600
5500
5400
5300
5200
5100
5000
4900
4800
4700
January
January
Inventory Graph B
February March
Inventory Graph D
February
April
.l.l.l
March
May
April
June
May
June
I
Which graph represents inventory levels based on receipt of an order of 500 units bimonthly and a
demand of 500 units bimonthly?
Transcribed Image Text:48. Review the graphs below. Review the graphs below: 8000 7000 6000 5000 4000 3000 2000 1000 0 8000 7000 6000 5000 4000 3000 2000 1000 0 January January Inventory Graph A February March Inventory Graph C 11 February A. Inventory graph B B. Inventory graph A C. Inventory graph D D. Inventory graph C April March April Il May May June June 8000 7000 6000 5000 4000 3000 2000 1000 0 5600 5500 5400 5300 5200 5100 5000 4900 4800 4700 January January Inventory Graph B February March Inventory Graph D February April .l.l.l March May April June May June I Which graph represents inventory levels based on receipt of an order of 500 units bimonthly and a demand of 500 units bimonthly?
27.An employee has been asked to decide which machine to choose from four possibilities.
The purchase and installation cost for each machine is identical. The decision tree below
describes the conditions and expected values.
Which machine
to purchase?
Machine A
O Machine D
O Machine B
O Machine A
O Machine C
[
Machine B
Machine C
Machine D
Increase
productivity
$100,000
Increase
productivity
$50,000
Increase
productivity
$100,000
No increase in
productivity
Increase
productivity
$50,000
Increase
productivity
$25,000
Increase
productivity
$250,000
Decrease
productivity
$50,000
Probability 0.25
Probability 0.75
Probability 0.50
Probability 0.50
Probability 0.40
Probability 0.60
Probability 0.25
Probability 0.75
$62,500
$50,000
$35,000
5,000
100,00
Which machine should this employee select to assure the board of directors that there is no likelihood of a reduction in productivity?
Transcribed Image Text:27.An employee has been asked to decide which machine to choose from four possibilities. The purchase and installation cost for each machine is identical. The decision tree below describes the conditions and expected values. Which machine to purchase? Machine A O Machine D O Machine B O Machine A O Machine C [ Machine B Machine C Machine D Increase productivity $100,000 Increase productivity $50,000 Increase productivity $100,000 No increase in productivity Increase productivity $50,000 Increase productivity $25,000 Increase productivity $250,000 Decrease productivity $50,000 Probability 0.25 Probability 0.75 Probability 0.50 Probability 0.50 Probability 0.40 Probability 0.60 Probability 0.25 Probability 0.75 $62,500 $50,000 $35,000 5,000 100,00 Which machine should this employee select to assure the board of directors that there is no likelihood of a reduction in productivity?
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