Capacity 100 chickens 150 chickens Low Demand P85,000 40,000 Medium Demand P85,000 130,000 High Demand P85,000 130,000 200 chickens (25,000) 75,000 175,000 Required: Strategy Decision Relevant Income of the Decision Maximin a. b. Maximax C. d. Laplace е. f. Minimax Regret 9. h. Expected Value (20:50:30 probabilities for Low: Medium: High) i. k. Assuming the same probabilities in i and j, how much should Bob be willing to pay for perfect information?

Capacity 100 chickens 150 chickens Low Demand P85,000 40,000 Medium Demand P85,000 130,000 High Demand P85,000 130,000 200 chickens (25,000) 75,000 175,000 Required: Strategy Decision Relevant Income of the Decision Maximin a. b. Maximax C. d. Laplace е. f. Minimax Regret 9. h. Expected Value (20:50:30 probabilities for Low: Medium: High) i. k. Assuming the same probabilities in i and j, how much should Bob be willing to pay for perfect information?

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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APC industries has been experiencing significant growth and has been having difficulty meeting customer demands recently. They are considering three options to address this issue. They can move to a larger facility, add a second shift or use a subcontractor to assist in production. The annual payoff ofeach option depends on if the current market continues to expand hold s steady or decline. The expected payoff for each combination is shown in the table below Option Expand Steady Decline Move to larger city 250,000 125,000 -90,000 Add a second shift 175,000 80,000 -45,000 Subcontract 90,000 15,000 -10,000 What are the most that the APC should be willing to pay for additional information? UseExpected Regret Use the alternative method to verify EVPI
Exercise 4.3 Yogurt Hut, Ltd., sells natural yogurt in a college community. The manger is filling out the orders for next week's supply of yogurt. She is uncertain what sales will be. She has the table below as a historical representation of profits given certain sales and buying-level combinations. Weekly sales Actions Buy 200 ($) Buy 300 ($) Buy 400 ($) 200 50 25 0 300 50 75 50 400 50 75 100 Using the maximax decision criterion, what dvice can you give about quantities of yogurt to buy for next week?
Case. 15.1. Ski Jacket Production. Egress, Inc., is a small company that designs, produces, and sells ski jackets and other coats. The creative design team has labored for weeks over its new design for the coming winter season. It is now time to decide how many ski jackets to produce in this production run. Because of the lead times involved, no other production runs will be possible during the season. Predicting ski jacket sales months in advance of the selling season can be quite tricky. Egress has been in operation for only three years, and its ski jacket designs were quite successful in two of those years. Based on realized sales from the last three years, current economic conditions, and professional judgment, 12 Egress employees have independently estimated demand for their new design for the upcoming season. Their estimates are listed in Table 15.2 To assist in the decision on the number of units for the production run, management has gathered the data in Table 15.3. Note that S…
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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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Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year.…
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Explain, in your own words: What is the purpose of a control matrix?
You are the marketing director for a company that manufactures bodybuilding supplements, and you are planning to run ads in Sports Illustrated and GQ Magazine. On the basis of readership data, you estimate that each ad in Sports Illustrated will be read by 600,000 people in your target group, while each ad in GQ will be read by 150,000. You would like your ads to be read by at least 12 million people in the target group, and you plan to place at least 6 ads in Sports Illustrated and at least 8 ads in GQ during the next year. Sports Illustrated quotes you $2000 per ad, while GQ quotes you $1000 per ad. How many ads should be placed in each magazine to satisfy your requirements at a minimum cost? Sports Illustrated ads GQ Magazine ads