5. Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative 55 d₁ d2 5280 $1 $2 $3 50 -20 100 -100 The indifference probabilities are as follows: Indifference Probability (p) ☐ Payoff Decision Maker A 100 1.00 80 0.95 50 0.90 20 0.70 -20 0.50 -100 0.00 Decision Maker B 1.00 0.70 0.60 0.45 0.25 0.00 a. Plot the utility function for money for each decision maker. Decision Maker C 1.00 0.90 0.75 0.60 0.40 0.00 b. Classify each decision maker as a risk avoider, a risk taker, or risk neutral. C. For the payoff of 20, what is the premium that the risk avoider will pay to avoid risk? What is the premium that the risk taker will pay to have the opportunity of the high payoff?

The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): Decision    State of Nature   Alternative Low Demand (S1) Medium Demand (S2) High Demand )S3) Manufacture, d(1) -20 40 100 Purchase, d(2) 10 45 70 The state-of-nature probabilities are P s1= 0.35, P s2= 0.35, and P s3= 0.30 Use expected value to recommend a decision.

Sales of Cool-Man air conditioners have grown steadily during the past 5 years: (Round your answers to 2 decimal places.) Forecast Forecast Year Sales (a = 0.30) (a 0.90) 1 450 410.0 410.00 495 3 518 470.60 490.10 4 563 5 584 495.20 6 ? 1. The sales manager had predicted, before the business started, that year 1's sales would be 410 air conditioners. Using exponential smoothing with a weight of a = 0.30, complete the Forecast column to develop forecasts for years 2 through 6. What is the MADa=0.30 ? 2. Using exponential smoothing with a weight of a = 0.90, develop forecasts for years 2 through 6 by completing the Forcast column in the table. What is the MAD-0,90 ? 3. Using the trend projection method, develop a forecasting model to project sales for year 6. 2.

write Each variable in the table below has a corresponding indicator (measurement) from the literature? Nb: independent variable:awareness,convenience and benifit, transection mode of online,preventive management dependent variable: cybercrime, development of ecommerce

RDB Company wishes to assign a real estate brokers to one of its 6 sales districts. Based on theprofile of prospective buyers and the past performance of its top 6 brokers, the company estimatesthat average property sales, in lots/month, would be as follows:

Letz Products has two decisions to make, with the second decision dependent on the outcomeof the first. The company intends to build a new plant. Letz has the option of conducting itsown marketing research survey for which the results will either be positive or negative. Theinformation from this survey could help it decide whether to build a large plant, to build a smallplant, or not to build at all. Letz recognizes that although such a survey will not provide it withperfect information, it may be extremely helpful.    Using the image explain to your client (Letz) what the above decision tree shows. You arerequired to show all working.

Solve for the intercept (a).

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The Valley Wine Company purchases grapes from either of two nearby grape growers each season to produce a particular red wine. It purchases enough grapes to produce 3000 bottles of the wine. Each grower supplies a certain portion of poor quality grapes, resulting in a percentage of bottles being used as fillers for cheaper table wines according to the following probability distribution.   Probability of Percent Defective Defective (%) Grower A Grower B 2 .15 .30 4 .20 .30 6 .25 .20 8 .30 .10 10 .10 .10 The two growers charge a different prices for their grapes and because of differences in taste, the company charges different prices for their wine depending on which grapes they use. The annual profit from the wine produced from each grower's grapes for each percentage defective is as follows.   PROFIT DEFECTIVE GROWER A GROWER B  2% $44,200 $42,600  4   40,200  40,300  6   36,200  38,000  8   32,200  35,700 10   28,200  33,400 Use decision-tree…

ABC Company, a soft-drink vendor, has created a table of costs for four stocking decisions for two different states of nature: Alternatives Large Stock Medium Stock Small Stock States of Nature Low Demand $4080 $3060 $5100 High Demand $6800 $5440 $9520 For the Mini-Max decision making criterion, the best decision is Click to select