I need help with this please Consider the following decision matrix presenting net profit/loss estimates regarding an investment project:DEMANDLOW3010- 50EQUIPMENT USED1. Considering that the probabilities applicable to demand are not known, show the decision recommendationsfrom the points of view of MXMX; MXMN; REALISM at Alpha = .6; EQL LIKE'HD; and MIN. REGRETS. Do yousee a pattern? Which equipment would you choose? Explain.2. Consider now that the probabilities for demand being low, medium and high have been calculated as .25, .30,and .45, respectively. By using a decision tree, find the expected value (XBAR), the standard deviation (SIGMA),and the coefficient of variation (CoV) for each size of equipment. Which size of equipment would you recommendon the basis of the three statistics that you calculated?DMUU:3. Referring to the Z-Table, calculate the probability that each alternative (each different equipment) will turn outat least a $50 profit? What is the likelihood that each alternative will produce a profit BETWEEN $45 and $70?Perfect Optimism:Perfect PessimismOptimism at a=Be sure to show work, indicate the recommended alternative each time, provide a summary table (see below),and support your final statement with a reason.Letter & ValueEqual Likelihood:Minimizing Regret:SmallMediumLargeOverall DMUU:DMUR: ResultsABCBe SureXbarTo Support(Give Reasons!)SigmaMEDIUM406030ReasonYourCOVAnswersHIGH5060120Normal Dist.%(GiveReasons!)Normal Dist.%(GiveReasons!)

“Since you have posted a question with multiple sub-parts, in which subparts also consists of…

Consider the following decision matrix presenting net profit/loss estimates regarding an investment project: DEMAND LOW 30 10 -50 EQUIPMENT USED Small Medium Large MEDIUM 40 60 30 HIGH 50 60 120 1. Considering that the probabilities applicable to demand are not known, show the decision recommendations from the points of view of MXMX; MXMN; REALISM at Alpha = .6; EQL LIKE'HD; and MIN. REGRETS. Do you rn? Which equipment would you choose? Explain.

Consider the following decision matrix presenting net profit/loss estimates regarding an investment project: DEMAND LOW 30 10 -50 EQUIPMENT USED Small Medium Large MEDIUM 40 60 30 HIGH 50 60 120 1. Considering that the probabilities applicable to demand are not known, show the decision recommendations from the points of view of MXMX; MXMN; REALISM at Alpha = .6; EQL LIKE'HD; and MIN. REGRETS. Do you rn? Which equipment would you choose? Explain.

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

Similar questions

Why do IT professionals may overlook project cost management how this might affect their ability to complete projects within budget
Provide a comprehensive outline detailing the process of allocating individuals and resources to each activity within the Work Breakdown Structure (WBS)?
Please describe a meeting you have recently attended. and discuss What guidelines were followed during the meeting. What improvements would you suggest for the next meeting?
What is the Improving Wisely project and what impact may it have on health care?
Explain the key components of a business continuity plan (BCP) and their significance in disaster recovery.
How should you outline for a project that can be used for developing an optional corporate social responsibility awareness course for a workplace.
Could you go into a more detail on each of these?
What is a group technology?
Depending on how the classroom decision tree is set up, students will have the option of three distinct assignments. It's possible to accomplish the same goal in other ways. How would you recommend dealing with the difficulties associated with information gathering and decision making?
what is a simple process?
Explain what elements make up the contingency plan. When it comes to backup plans for mobile devices and personal computers, what is the difference?
What can be the issues and solutions in communicating with line management?