(Use this information to answer only problem 1 part d and problem 2. A on an excel sheet to show formulas used to answer these two questions) 1. A small building contractor has recently experienced two successive years in which work opportu-nities exceeded the firm's capacity. The contractor must now make a decision on capacity for nextyear. Estimated profits under each of the two possible states of nature are as shown in the tablebelow. Which alternative should be selected if the decision criterion is:a. Маximaх?b. Maximin?c. Laplace?d. Minimax regret?NEXT YEAR'SDEMANDAlternativeLowHighDo nothing$50*$60flonExpand2080Subcontract4070*Profit in $ thousands.2. Refer to Problem 1. Suppose after a certain amount of discussion, the contractor is able to sub%3Dtively assess the probabilities of low and high demand: P(low) = .3 and P(high) = .7.a. Determine the expected profit of each alternative. Which alternative is best? Why?

Minmax regret model of table which identify the lowest regression from regressions. Using the given…

70 b. Mаximin? c. Laplace? d. Minimax regret? uly the ualysis NEXT YEAR'S DEMAND Alternative Low High Do nothing $50* $60 Expand 20 80 Subcontract 40 *Profit in $ thousands. 2. Refer to Problem 1. Suppose after a certain amount of discussion, the contractor is able to sub- %3D %3D tively assess the probabilities of low and high demand: P(low) = .3 and P(high) = .7. a. Determine the expected profit of each alternative. Which alternative is best? Why?

70 b. Mаximin? c. Laplace? d. Minimax regret? uly the ualysis NEXT YEAR'S DEMAND Alternative Low High Do nothing $50* $60 Expand 20 80 Subcontract 40 *Profit in $ thousands. 2. Refer to Problem 1. Suppose after a certain amount of discussion, the contractor is able to sub- %3D %3D tively assess the probabilities of low and high demand: P(low) = .3 and P(high) = .7. a. Determine the expected profit of each alternative. Which alternative is best? Why?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Q: how would you input the formula into exce

A: FIT = Forcast Including Trend FIT = Ft + Tt Ft = FITt-1 + a {(At-1) -(FITt-1)} Tt = Tt-1 + b…

Q: Most of the databases we use on a regular basis have gone through the entire design process--from…

A: A data model is a model used to organize the elements of the conceptual data and assign…

Q: What is the capacity of the shop (in units per minute)? Note: Round your answer to 3 decimal places.…

A: Time required at Step 1 = 2 minsTime required at Step 2 = 4 minsTime required at Step 3 = 5…

Q: A production process at Kenneth Day Manufacturing is shown in the figure below. The drilling…

A: (a). Converting each capacity to process time. We get the following resultsSawing : 5 units/hr = 12…

Q: What is OEE and also calculate the OEE from the given data in below table Items Data Shift Length 8…

A: Given, a table of data.It is required to explain the OEE and then calculate the OEE for the given…

Q: Additional Algo 4-10 Integrated Work Electricians are trained in a process with two resources. The…

A: Capacity planning is the process of determining the resources and infrastructure required to meet…

Q: What is one important advantage of a Make-To-Stock process? Group of answer choices Can respond…

A: A firm has to take important decision rested to how much to produce and how much to stock so as to…

Q: 969) During the campus Spring Fling, the bumper car amusement attraction has a problem of cars…

A: Find the given details below: Arrival time (mins)λ33.33Service time (mins)μ40.00

Q: A retired couple supplement their income by making fruit pies, which they sell to a local grocery…

A: There are 2 products produced - Apple Pie & Grape PieThe details related are given below:Apple…

Q: What are the answers for these blank two: 1. Property_service must exist in Owned_Property 2.…

A: 1. Property_service must exist in Owned_Property:This statement is already covered in the database…

Q: Which answer is FALSE and explanation A populer fast food restaurant has one cashler who takes an…

A: Queueing theory is that the mathematical study of waiting lines, or queues. A queueing model is…

Q: You can copy the solutions from text books or any other external sources. True False

A: The act of duplicating or reproducing something, such as text, photos, data, or information, from…

Q: A manufacturer's average WIP inventory for Part #2934 is 900 parts. The workstation produces parts…

A: Little's law states lead time (aka flow time) = Work in progress / Thorughput this can also be…

Q: Solve the question below using the attached excel templates with formulas for renting both slow and…

A: Employee's time worth (per hour) $15 Need of employees per hour 4 Slow copier Cost of…

Q: The cost information of an old process unit that has a capacity of 5,400 ft/hr and a total cost of…

A: Given that, The capacity of old unit (Capacity 1) = 5,400 ft3/hrThe capacity of new unit (Capacity…

Q: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and…

A: Variable costs (V) = 80 Fixed costs (F) = 1400 Sales (S) = 100 cameras Additional variable cost (V2)…

Q: When grouping by time, a user can only select one time unit. O True False

A: In excel, the data can be grouped in a different manner. Grouping the data by time is done in…

Question

(Use this information to answer only problem 1 part d and problem 2. A on an excel sheet to show formulas used to answer these two questions)

1. A small building contractor has recently experienced two successive years in which work opportu-
nities exceeded the firm's capacity. The contractor must now make a decision on capacity for next
year. Estimated profits under each of the two possible states of nature are as shown in the table
below. Which alternative should be selected if the decision criterion is:
a. Маximaх?
b. Maximin?
c. Laplace?
d. Minimax regret?
NEXT YEAR'S
DEMAND
Alternative
Low
High
Do nothing
$50*
$60
flon
Expand
20
80
Subcontract
40
70
*Profit in $ thousands.
2. Refer to Problem 1. Suppose after a certain amount of discussion, the contractor is able to sub
%3D
tively assess the probabilities of low and high demand: P(low) = .3 and P(high) = .7.
a. Determine the expected profit of each alternative. Which alternative is best? Why?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2; 1d) Minmax regression model

VIEW

Step 3; 2A) Expected profit model

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

A convenience store uses the fixed-period inventory control system (FPS) to manage its inventory of distilled water bottles. This system relies on the following information. (a)Using EOQ (rounded up), what is the time interval between reviews T in operating days? Note that after having the rounded-up EOQ, you should not round up values at intermediate steps; and, you should round T up only after the last calculation. (For example: enter 10 for 10 days.) (b) What is the current inventory position (IP) in bottles? (For example: enter 70 for 70 bottles) (c)Without safety stock, what is the replenishment level without safety stock M(AD) in bottles? Note that the question does not ask for M(ST). (For example: enter 70 for 70 bottles) (d)If today is the review day and without safety stock, what is the order quantity in bottles given M(AD)? (For example: enter 70 for 70 bottles)
Mr Robert is working as the head of the accounting department in HARDA Limited for a decade. HARDA Limited wants to move from the legacy system to a new accounting information system. For this purpose, Mr Robert contacted a system professional, Paul Walker. During the initial meeting, Paul reveals that our system analysis team will first examine the old system, such as reviewing key documents and observing the workers perform their tasks. This initial analysis will enable us to determine which aspects are working well and which should be preserved. Robert disagrees with his opinion. Robert indicates that we have been through these types of projects before, and what always ends up happening is that we do not get the new system we are promised. We get a modified version of the old system. Paul Walker is still strict with his opinion and says that I can guarantee you that this will not happen again. As a system analyst, I need a proper understanding of the old system. What is working…
Correct complete solutions need only 100% sure experts solve it correct complete solutions with final answers and drawing ok
Your company wants to replicate its travel expense management process from paper-based to an electronic process. In the current process, an employee wishing to travel would simply complete a travel notification form and send to his/her supervisor, and keep a copy. There is no requirement for the supervisor to approve the form prior to the employee travel. At the end of the travel, the employee attaches his/her travel expense receipts to his/her copy of the travel notification form and submits to the supervisor for approval. For this project, the company has indicated that it does not plan to change any aspect of the paper-based travel expense management process, at least initially, even though not doing so could expose the company to various types of risks. You have been appointed the project manager for this project, and one of your responsibilities is to assess the risks associated with replicating the paper-based travel expense management process without introducing any new controls…
Please do not give solution in image formate thanku. Avis Company is a car rental company that is located three miles from the Los Angeles airport (LAX). Avis is dispatching a bus from its offices to the airport every 3 minutes. The average traveling time (round-trip) is 10 minutes. a.How many Avis buses are traveling to and from the airport? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Do not use chatgpt
Why is the Hayes and Wheelwright product-process matrix NOT used to analyze service delivery systems? a. The relationship between volume and process is not found in many service businesses. b. Services tend to have lower variety, so the variety element of Hayes & Wheelwright is not applicable. c. Services cannot add capacity. d. When services change processes to increase volume, they can still handle a wide variety of customer requests.
draw a level 0 data flow diagram for the process of buying glasses: the patient sees a doctor who will give him a prescription. After patient sees a doctor , patients information is stored in the patients database. Once the patient has a prescription , he goes to a glass store, where he selects his frame and place the order for his glasses once the glass has been made the patient gets the notification. Her will return to the store for a fitting and pay for the glasses. The payment information is sent to the order database.
establish the significance of random numbers in Monte Carlo simulations.
Which of these changes will serve to break order synchronization?
Read the scenario and then, using the table (if you prefer) , tell us the pros and cons for each of the options (A,B,&C) from both the customer and salesperson's perspective while considering the circumstances. Pros - Customer & Salesperson Perspective Cons - Customer & Salesperson Perspective option A Customer: Salesperson: Customer: Salesperson: Option B Customer: Salesperson: Customer: Salesperson: Option C Customer: Salesperson: Customer: Salesperson:
What is the total cost for these services ?