ABU BAKAR Bed and Breakfast, in a small historic Melaka town, must decide how to subdivide (remodel) the large old home that will become its inn. There are three alternatives: Option A would modernized all baths and combine rooms, leaving the inn with four suites, each suitbale for two to four adults. Option B would modernized only the second floor; the results would be six suites, four for two to four adults, two for two adults only. Option C (the status quo option) leaves all wall intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. The details of profit and demand patterns that will shows each option are: Table 1: Profit and probability information for each alternative [Jadual 1: Maklumat keuntungan dan kebarangkalian setiap alternatif.] Annual Profit Under Various Demand Patterns [Keuntungan tahunan dibawah pelbagai permintaan] Alternatives [Alternatif] High [Tinggi] Probability [Kebarangkalian] Average [Sederhana] Probability [Kebarangkalian] A (modernized all) RM100,000 0.5 RM35,000 0.5 B (modernized 2nd) RM90,000 0.4 RM80,000 0.6 C (status quo) RM70,000 0.3 RM65,000 0.7 Compute the expected monetary value (EMV) for all alternatives. Analyse which alternatives is the best decision criterion.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
ABU BAKAR Bed and Breakfast, in a small historic Melaka town, must decide how to subdivide (remodel) the large old home that will become its inn. There are three alternatives: Option A would modernized all baths and combine rooms, leaving the inn with four suites, each suitbale for two to four adults. Option B would modernized only the second floor; the results would be six suites, four for two to four adults, two for two adults only. Option C (the status quo option) leaves all wall intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. The details of profit and demand patterns that will shows each option are:
Table 1: Profit and
[Jadual 1: Maklumat keuntungan dan kebarangkalian setiap alternatif.]
|
Annual Profit Under Various Demand Patterns [Keuntungan tahunan dibawah pelbagai permintaan] |
||||
|
Alternatives [Alternatif] |
High [Tinggi] |
Probability [Kebarangkalian] |
Average [Sederhana] |
Probability [Kebarangkalian] |
|
A (modernized all) |
RM100,000 |
0.5 |
RM35,000 |
0.5 |
|
B (modernized 2nd) |
RM90,000 |
0.4 |
RM80,000 |
0.6 |
|
C (status quo) |
RM70,000 |
0.3 |
RM65,000 |
0.7 |
- Compute the
expected monetary value (EMV) for all alternatives. - Analyse which alternatives is the best decision criterion.
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