A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15, and a 20% probability the price will be $20. The manager must decide whether to produce 6,000 units of output (A), 8,000 units (B) or 10,000 units (C). The following table shows 9 possible outcomes depending on the output chosen and the actual price. Production Profit (Loss) when price is $10 $15 $20 6,000 (A) −$200 $400 $1,000 8,000 (B) −$400 $600 $1,600 10,000 (C) −$1,000 $800 $3,000 What is the variance if 6,000 units are produced?
A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15, and a 20% probability the price will be $20. The manager must decide whether to produce 6,000 units of output (A), 8,000 units (B) or 10,000 units (C). The following table shows 9 possible outcomes depending on the output chosen and the actual price. Production Profit (Loss) when price is $10 $15 $20 6,000 (A) −$200 $400 $1,000 8,000 (B) −$400 $600 $1,600 10,000 (C) −$1,000 $800 $3,000 What is the variance if 6,000 units are produced?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A firm making production plans believes there is a 30% probability the price will be $10, a 50% probability the price will be $15, and a 20% probability the price will be $20. The manager must decide whether to produce 6,000 units of output (A), 8,000 units (B) or 10,000 units (C). The following table shows 9 possible outcomes depending on the output chosen and the actual price.
| Production | Profit (Loss) when price is | |||
| $10 | $15 | $20 | ||
| 6,000 | (A) | −$200 | $400 | $1,000 |
| 8,000 | (B) | −$400 | $600 | $1,600 |
| 10,000 | (C) | −$1,000 | $800 | $3,000 |
What is the variance if 6,000 units are produced?
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