A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment:| Investment | Gasoline Availability | | ||--------------|-----------------------|---------|-------------|| | Shortage | Stable Supply | Surplus || Motel | -$8,000 | $15,000 | $20,000 || Restaurant | $2,000 | $8,000 | $6,000 || Theater | $6,000 | $6,000 | $5,000 |Determine the best investment, using the following decision criteria:a. Maximaxb. Maximinc. Minimax regretd. Hurwicz (α = 0.4)e. Equal likelihood

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Answered: A local real estate investor in Orlando…

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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Question 1 Consider an investor's choice of a farm unit in the Corn Belt, one in the Califormia Central Valley, or the one in the Great Plains region. An investor added these three assets in one portfolio. The portfolio composed of equal proportions of the three investments. Use the information in the table below to answer the questions that follows (show all your work for partial credits). Investment Alternatives Corn Belt (1) Central Valley (2) Great Plains (3) Exp. Return n-0.14 0.12 n-0.07 Std. Dev. O-0.08 o-0.05 oy-0.01 Weight in Portfolio w-1/3 wz-1/3 wy-1/3 Correlation Among Investment 1 and 2 (p2)-0.30 1 and 3 (pu) --0.40 2 and 3 (s) --0.10 Portfolio Data for Financial Servicing Analysis Under Risk a. Calculate the expected retum of the portfolio. b. Calculate the variance and the standard deviation of the portfolio. c. Calculate the variance and standard deviation of the portfolio assuming that the correlation among the investments is all equal to 0. d. Calculate the variance…
• Part 1 Rework problem 8 in section 1 of Chapter 7 of your textbook, about the office furniture manufacturer, using the following data. Assume that each filing cabinets requires 55 pounds of steel and 3.5 hours of labor, and that each desk requires 70 pounds of steel and 2.5 hours of labor. Assume also that the manufacturer has available 144 tons of steel and 1400 hours of labor. Assume also that the profit on each desk is $40.00 and the profit on each filing cabinet is $33.00. How many filing cabinets and desks should the manufacturer produce in order maximize its profit? When you formulate a linear programming problem to solve this problem, how many variables, how many constraints (both implicit and explicit), and how many objective functions should you have? Number of variables: 2 Number of constraints: 4 Number of objective functions: 1 • Part 2 • Part 3 Formulate the linear programming problem for this situation. (Enter either the word Maximize or the word Minimize in the first…
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answer D & E ONLY
Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: October 1,700 November 2,700 December 5,400 January 4,400 14,200 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. She will produce the 14,200 items at a level of 3,550 per month. a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do not leave any empty spaces; input a O wherever it is required. Negative values should be indicated by a minus sign.) October November December January Antonio Banderos & Scarves Units sold Units Produced Change in inventory Ending inventory b. If the inventory costs $4 per unit and will be financed through the bank at 12…
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