A company that produces passenger cars reviews the annual sales andclassifies it in one of 2 states: 0 (unsuccessful, sales are low) and 1 (successful, sales arehigh). The marketing manager then decides on whether or not to advertise this car tofurther promote the sales. The “no advertisement" decision is label as k =1 and the"advertisement" decision is k = 2. Past data indicates that that the transition probabilitiesfor each decision is given below:0.70.6 0.4) P,(2) = [2 08Moreover, the annual "profit" matrix if decision k is taken when the state is i is estimatedas9--3°Cik3025.The marketing manager wants to find the optimal policy in order to maximize the averageprofit per year.a)at all in any state.What is the average profit per year if the manager chooses not to advertiseb)optimal policy (do not solve it),Determine the primal linear programming formulation in order to find thec)that the initial policy is not to advertise at all in any state.Perform only 1 iteration of the policy improvement algorithm assuming

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Answered: A company that produces passenger cars…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Three friends are having a debate. They recently read that on average Americans drive 16 miles each way when computing to work by car (ABC News, 2007). Friend A suspects that the mean for Colorado residents is likely lower than the national average because the population density of Colorado increases the likelihood that people live closer to their jobs, while friend B suspects the mean for Colorado residents is likely higher than the national average. Friend C does not find either argument very convincing and instead suspects that the mean for Colorado residents is no different from the US population mean. The three friends bet a dinner at Alinea and set out to resolve the debate. Using a random sample of 20 Colorado residents, they calculate the mean for their sample to be 14.23 miles with a standard deviation of 2.34. The three friends did not pay very close attention in their statistics class, so they need your help making sense of these numbers. Compute the 95% confidence…
23 views A well-known multinational FMCG produces more than fifty products and sells them in the market. Out of fifty products one is mineral water for drinking purpose and supplies different size pack bottles in the market. Product manager observed that, during hot days the sale of water is more as compared to the normal days. He started the collection of data of weekly sale of water and the average weekly temperature. Product manager was interested in developing a relationship between sales and temperature; therefore, he discussed and shared the following data with you. sales 75 77 69 63 79 80 77 70 73 87 72 73 80 80 69 84 77 72 74 81 temperature 32 36 31 31 34 29 32 35 28 31 30 31 29 35 36 28 32 33 32 33 Sale is in thousand liters and temperature is in degree Celsius. Data is Normally distributed You are required to determine the following information for some concrete decision:…
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