**Decision Making for Opening a Bakery**Dillon DeMarco is considering opening a small Italian bakery in the nearby mall, close to the Italian section of the city. He has chosen a strategic location where he believes there will be interest in the bakery. However, Dillon is unsure about the level of interest and is weighing his options between a small, medium, or large shop. The decision is influenced by the state of the economy in the coming year, affecting customers' spending on his Italian delicacies.**Economic Probabilities:**- Strong Economy: 20%- Average Economy: 30%- Bad Economy: 50%**Decision Table:**| Alternatives | Strong Economy | Average Economy | Bad Economy ||---------------|----------------|-----------------|-------------|| Small Shop | $25,000 | $18,000 | $30,000 || Medium Shop | $50,000 | $50,000 | $45,000 || Large Shop | $85,000 | $66,000 | $48,500 |The potential payoffs for each shop size are influenced by the economy's state.**Task:**Calculate the Expected Monetary Values (EMV) for each alternative using the given probabilities.**Answer:**To find the EMV for each shop option, use the formula:\[ \text{EMV} = (\text{Payoff in Strong Economy} \times \text{Probability of Strong Economy}) + (\text{Payoff in Average Economy} \times \text{Probability of Average Economy}) + (\text{Payoff in Bad Economy} \times \text{Probability of Bad Economy}) \]1. **EMV (small shop) = $"".**2. **EMV (medium shop) = $"".**3. **EMV (large shop) = $"".**Fill in the calculations for the EMVs based on the provided formula and data.

Answered: Dillon DeMarco is considering opening a…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

Shawna is the marketing manager for Yummy Marinades and Dips. The company wants to should introduce a new cooking sauce product line with the brand Con-Cook-Tions. Shawna is deciding if she would initially do a test market in selected cities on the East Coast or do a big national product launch. The cost of doing the test market is $150,000. If Shawna does the test market, she has to wait for the results of the test market before she decides to do a nationwide launch of Con-Cook-Tions. The probability of a positive response from the test market result is estimated to be 0.6. Alternatively, Shawna could also decide to bypass the test market and go ahead with the national launch. If Con-Cook-Tions is launched nationally and becomes a huge success, the company estimates that it will realize an annual profit of $1.6 million. If the launch fails and the market reacts negatively to the sauces, Yummy will incur a loss of $700,000. Shawna company believes the probability of success for…
Paisley’s Pâwtisserie and its popular dog treats grew faster than you expected. And just as you contemplated leaving your full-time job to turn your hobby into a career, something serendipitous happened. Your friend put his coffee bar up for sale. You contemplated buying his space, serving coffee and pastries upfront, and having the “barkery” in the back. With only you and the part-time baker, you would clearly need more staff. What would a new organizational structure look like? Without committing to any changes while you were still a full-time employee, you took the opportunity to sketch the roles that would eventually need to be filled. Thinking through your vast network, you imagined a few people you could slot in if you were granted the ideal staff. You, as owner and president, ended up with the following potential hires along with their roles: Aliyah, general manager; James, sales and marketing director; Sofia, office manager; Alejandro, bar manager; Cheri, chef and kitchen…
Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea. Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)."12 What is the slope, including units, of the model for DVD sales? Write a statement interpreting the meaning of the slope in the context of the problem.
So I decide to go to Cinnaholic once day and I buy two cinnamon rolls. I notice that these cinnamon rolls do not appear to be the same size, so naturally I eat the smaller one first and then eat the bigger one. As I am sitting on my couch stuffed from those delicious rolls, I start to think, "I wonder if Cinnaholic makes their cinnamon rolls to the size they claim them to be." Of course I have to go and purchase several rolls, weigh them (in ounces), and eat them. 30 pounds later, I have collected all of my data and tabulated it below: Cinnamon Roll Weight 5.6, 6.3, 6.1, 6.1, 5.9, 5.8, 6.0, 6.0, 6.1, 6.3, 6.3, 6.3, 6.4, 5.8, 5.7. Cinnaholic claims that their Cinnabon rolls are made to weigh 6.1 ounces on average. The mean is 6.0467 Standard deviation: 0.2475
In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $32 per doll. During the holiday selling season, FTC will sell the dolls for $40 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Determine the equation for computing FTC's profit for given values of the…
The owners of a candy store want to sell, for $6 per pound, a mixture of chocolate-covered raisins, which usually sells for $3 per pound, and chocolate-covered macadamia nuts, which usually sells for $8 per pound. They have a 40-pound barrel of the raisins. How many pounds of the nuts should they mix with the barrel of raisins so that they hit their target value of $6 per pound for the mixture?
ou are thinking of making your home more energy efficient by replacing some of the light bulbs with compact fluorescent bulbs and insulating part or all of your exterior walls. Each compact fluorescent light bulb costs $4 and saves you an average of $2 per year in energy costs, and each square foot of wall insulation costs $1 and saves you an average of $0.20 per year in energy costs.+ Your home has 40 light fittings and 1,300 square feet of uninsulated exterior wall. You can spend no more than $1,400 and would like to save as much per year in energy costs as possible. How many compact fluorescent light bulbs and how many square feet of insulation should you purchase? (If an answer does not exist, enter DNE.) compact fluorescent light bulbs
On February 23, 2011 Matthew Wald blogged in The New York Times that, “a car buyer who lays out an extra $6,200 to buy the hybrid version of the Lexus RX will get the money back in gas savings within five years, according to Consumer Reports magazine, but only if gasoline averages $8.77 a gallon. Otherwise, the nonhybrid RX 350 is a better buy than the Hybrid 450h, the magazine says.”Wald notices that the study assumes:▪ The car will be driven 12,000 miles a year.▪ Gas will cost $2.80 a gallon.▪ The hybrid gets 26 miles per gallon while the nonhybrid gets 21.(a) Show that the computation is wrong—that at $8.77 per gallon of gas you can’t save $6,200 in 60,000 miles of driving.(b) Show that you can save that much with that much driving if gas costs $8.77 per gallon more than $2.80 per gallon.
Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea. Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)." What is the slope, including units, of the model for streaming videos?
The County Theater is an independent entertainment theater that is in the middle of a new renovation to expand their current layout of two screens. With their current renovation plan, they hope to increase their screens to three. As of now, they are still in need of $14,000 to finish the construction project. Through market research completed on their members as well as the greater community, they estimated that each donator would give around $50. As the donations have been coming in over the course of the last 18 months, they believe that the research estimate may have been too high. They created a sample of members consisting of 40 individuals. On average, they are willing to give $40 and the standard deviation for the sample is $1.35. With an alpha of .05, construct an appropriate hypothesis test. If you find that the null hypothesis is not true, what real world circumstance may have affected the research estimate?
An investor has $5000 to invest in three different accounts. One is low-risk,one is a medium-risk and the third is a high-risk investment. The low-risk account is expected to pay 5.2% interest, the medium-risk investment is expected to pay 6.7% interest and the high-risk investment is espected to pay10.3% interest. Due to her age, the investor is willing to invest twice as much money in the high-risk account as in the low-risk investment. How much money should be invested in each of the accounts to anticipate a return of 8% on the total investment.
The Fore and Aft Marina is located on the Ohio River near Madison, Indiana. Fore and Aft currently operates a docking facility where only one boat at a time can stop for gas and servicing. The manager of the Fore and Aft Marina wants to investigate the possibility of enlarging the docking facility so that two boats can stop for gas and servicing simultaneously. Assume that the arrival rate is 3 boats per hour and that the service rate for each server is 9 boats per hour. (Round your answers to four decimal places.) (a) What is the probability that the boat dock will be idle? (b) What is the average number of boats that will be waiting for service? (c) What is the average time (in hours) a boat will spend waiting for service? h (d) What is the average time (in hours) a boat will spend at the dock? h (e) If customers expect to be able to be in and out of the marina within 10 minutes on average, does this system provide acceptable service? ---Select--- V since the average time a boat will…

SEE MORE QUESTIONS

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS