Homework Help is Here – Start Your Trial Now!
Business
Operations Management
answer only d, e,f

answer only d, e,f

Practical Management Science
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
icon
Related questions
Question

operation mangement

answer only d, e,f

6. Professor Hong has developed a payoff table that indicates the payoffs associated with a set of alternatives under three possible states of nature. Name: Tenure Promotion Fired Teach at another university $120,000 $22,000 $20,000 Apply for the dean's job $40,000 $45,000 $180,000 Go into industry $30,000 $150,000 $250,000 a. As you already know Hong is an extremely optimistic person, what is his investment decision? b. Today Hong had an argument with his mom and is feeling extremely pessimistic, what decision will he make? c. If Hong chooses to minimize his maximum regret, what is his investment decision? d. If the manager is neither optimistic nor pessimistic (50:50), what decision will he make? e. If Hong thinks the chances of tenure, promotion, and fired are 30%, 20%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire? f. If Hong thinks the chances of tenure, promotion, and fired are 30%, 20%, and 50%, respectively, what is the expected value of perfect information?
Transcribed Image Text:6. Professor Hong has developed a payoff table that indicates the payoffs associated with a set of alternatives under three possible states of nature. Name: Tenure Promotion Fired Teach at another university $120,000 $22,000 $20,000 Apply for the dean's job $40,000 $45,000 $180,000 Go into industry $30,000 $150,000 $250,000 a. As you already know Hong is an extremely optimistic person, what is his investment decision? b. Today Hong had an argument with his mom and is feeling extremely pessimistic, what decision will he make? c. If Hong chooses to minimize his maximum regret, what is his investment decision? d. If the manager is neither optimistic nor pessimistic (50:50), what decision will he make? e. If Hong thinks the chances of tenure, promotion, and fired are 30%, 20%, and 50%, respectively, what are the expected net revenues for the number of workers he will decide to hire? f. If Hong thinks the chances of tenure, promotion, and fired are 30%, 20%, and 50%, respectively, what is the expected value of perfect information?
Expert Solution
steps

Step by step

Solved in 3 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS