Considering the following decision tree, what is the EV atnode 3?Assume the payoffs are COST values. **Enter thenumber only** P(F) = 0.6 P(U) = 0.4 P(s1 | F) = 0.75 P(s1 |U)=0.55 P(s2 | F) = 0.25 P(s2 | U) = 0.45 P(s1) = 0.7 P(S2) =0.31MarketResearchNo MarketResearchF**Enter the number only**d₂2d₂(10)5₁5₂5₁5₂45₂5₁SBOYS₁100300400200100300400200100300400200

Here, the prior probabilities and posterior probabilities are given.Prior Probability:Posterior…

Answered: Considering the following decision…

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...

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Lake Stevens Marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30 . The selling price per dollar of sales is: $1.00 Determine the effect on the break-even point in sales dollars considering each of the following independently. 1. Total fixed costs increase to $365,000. Break-even point = ÷ = 2. Variable costs decline to $0.25 per sales dollar. Break-even point = ÷ = 3. The anticipated sales volume increases to $1,100,000. Break-even point = ÷ = Comment on the BEPs from the above analyses in questions 1,2,3.
10.4 The staff of Jefferson Medical Services has estimated the following net cash flows for a food services operation that it may open in its outpatient clinic: Year Expected Net Cash Flow 0 ($100,000) 1 30,000 2 30,000 3 30,000 4 30,000 5 30,000 5 (salvage value) 20,000 The time 0 cash flow is the net investment outlay, while the final amount is the terminal cash flow. (The clinic is expected to move to a new building in five years.) All other flows represent net operating cash flows. Jefferson’s corporate cost of capital is 10 percent. What is the project’s IRR? Assuming the project has average risk, what is its NPV? Now, assume that the operating cash flows in years 1 through 5 could be as low as $20,000 or as high as $40,000. Furthermore, the salvage value cash flow at the end of year 5 could be as low as $0 or as high as $30,000. What are the worst-case and best-case IRRs? The worst-case and best-case NPVs?
pls answer the 2nd question: The Montemar Company is considering contracting with a market research firm to do a survey to determine future market conditions. The results of the survey will indicate either positive or negative market conditions. There is a 0.60 probability of a positive report, given favorable conditions; a 0.30 probability of a positive report, given stable conditions; and 0.10 probability of a positive report; given unfavorable conditions. There is a 0.90 probability of negative report, given unfavorable conditions; a 0.70 probability given stable conditions; and a 0.40 probability, given favorable conditions. a b & c, as per the guidelines
Answer the following questions based on the Strategy Region graph given below. The objective is to maximize the expected value. Support your answer. • If grant award is $50,000, what is the EV of the optimal strategy? • If grant award is above approximately $57,000, what is the optimal strategy?
Calculating outcomes as equally likely would BEST describe: O a. Maximax criterion O b. Laplace criterion O c. Regret criterion Od. Maximin criterion Determining the average payoff for each alternative and choosing the one with the BEST payoff is the approach called: ea, maximax O b. minimax regret O c. laplace Od maximin 2
Emerson Electric is considering the purchase of equipment that will allow the company to manufacture a new line of wireless devices for home appliance control. The first cost will be $80,000 and the life estimated is 6 years with a salvage value of $10,000. Three different salespeople have provided estimates regarding the added revenue the equipment will generate. Salespersons 1,2, and 3 have made estimates of $10,000 , $16,000 , and $18,000 per year respectively if the Companys MARR is 8% per year find the PW of each salespersons estimates.
Provide a circumstance under which the expected monetary value is appropriate for decision making.
The table shows the hypothetical trade-off between different combinations of Stealth Bombers and B-1 Bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus. Production Possibilities for Bombers Combination Number of B-1 Opportunity Cost (Foregone Stealth) S T 0 NA Number of Stealth 10 Opportunity Cost (Foregone B-1) 1 9 U V 2 3 In the production range of 7 to 9 Stealth bombers, the opportunity cost of producing 1 more Stealth Bomber in terms of B-1 Bombers is 7 4 NA Multiple Choice 0. 3. 0.5. 2.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Please answer d, e and f. Question 2 A company is considering a project which has three options. The payoffs are shown in the body of the table. In this instance, the payoffs are in terms of present values, which represent equivalent current dollar values of expected future income less costs. This is a convenient measure because it places all alternatives on a comparable basis. If a small facility is built, the payoff will be the same for all three possible states of nature. For a medium facility, low demand will have a present value of $7 million, whereas both moderate and high demand will have present values of $12 million. A large facility will have a loss of $4 million if demand is low, a present value of $2 million if demand is moderate, and a present value of $16 million if demand is high. The payoff table depicting revenues and is shown in the following table. payoffs (PV inmillions) states ofnature Option Low Moderate High Small 10 10 10 Medium 7 12 12 Large -4…
pls answer the 2nd question: The Montemar Company is considering contracting with a market research firm to do a survey to determine future market conditions. The results of the survey will indicate either positive or negative market conditions. There is a 0.60 probability of a positive report, given favorable conditions; a 0.30 probability of a positive report, given stable conditions; and 0.10 probability of a positive report; given unfavorable conditions. There is a 0.90 probability of negative report, given unfavorable conditions; a 0.70 probability given stable conditions; and a 0.40 probability, given favorable conditions. d & e, as per the guidelines
Q2 The lower daily needs for workers in a manufacturing organization provided in the below table, each worker works for eight hours, the management needs to determine the lower number of workers to maintain the flow and stability of the work in each shaft. Formulate LP model for this problem and suggest (only suggestion) a method to find the optimal solution Shaft

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