COSTA Café is about to build a new restaurant. An architect has developed three building designs, each with a different seating capacity COSTA estimates that the average number of customers per hour will be 100, 150, or 200 with respective probabilities of0.3, 0.2, and 05. The payoff table showing the profits for the three designs is as follows: Average Number of Customers Per hour: c1 = 100 c2 = 150 c3 = 200 Design A $10,000 $15,000 $14,000 Design B $ 8,000 $18,000 $12,000 Design C $ 6,000 $16,000 $21,000 Calculate the expected value for each decision using the decision tree analysis.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
COSTA Café is about to build a new restaurant. An architect has developed three building designs, each with a different seating capacity COSTA estimates that the average number of customers per hour will be 100, 150, or 200 with respective probabilities of0.3, 0.2, and 05. The payoff table showing the profits for the three designs is as follows:
Average Number of Customers Per hour:
c1 = 100 c2 = 150 c3 = 200
Design A $10,000 $15,000 $14,000
Design B $ 8,000 $18,000 $12,000
Design C $ 6,000 $16,000 $21,000
Calculate the
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