For the Orlando real estate investment problem, assume the probabilities for the stable supply and surplus are .5, .3 and .2, then based on the computations of the expected payoff of the three investment options, the investor should choose O Motel only Restaurant only O Theater only O Either motel or restaurant
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- If during the following year it is predicted that each comedy skit will generate 30 thousand and each musical number 20 thousand, find the maximum income for the year. A television program director must schedule comedy skits and musical numbers for prime-time variety shows. Each comedy skit requires 2 hours of rehearsal time, costs 3000, and brings in 20,000 from the shows sponsors. Each musical number requires 1 hour of rehearsal time, costs 6000, and generates 12,000. If 250 hours are available for rehearsal and 600,000 is budgeted for comedy and music, how many segments of each type should be produced to maximize income? Find the maximum income.Approaching the month of Ramadan, PT Prima Sehat predicts that there will be an increase in demand for fresh meat. For this reason, the company seeks to optimize this moment for increasing company profits. One of the efforts made is to maximize income from the livestock sector by calculating the optimization of animal food. The raw material for animal feed used today is suspects and kala, at a price of Rp. 20 and Rp. 30 per kg.Each animal feed must contain alpha elements not less than 30 units and gamma 120 units, and beta elements at most 280 units. The composition of feed consisting of suspects and kala is at most 8 to 1. From the information received, it is known that the composition per kg of suspect consists of 6 alpha units, 20 units of Beta and 10 units of gamma. Whereas per kg of Kala contains 3 units of alpha composition, 40 units of Beta and 40 units of Gama. The company only provides Sangka as much as 8 kg per process Please use the linear graph method program to solve the…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 of each option depends on if the current market continues to expand, hold steady or declines. The expected payoff for each combination is show in the table below Option Expand Steady DeclineMove to larger facility 250,000 125,000 -90,000Add a second shift 175,000 80000 -45,000Subcontract 90,000 15,000 -10,000 a) Which alternative should APC choose under the maximax criterion? b) Which option should APC choose under the maximin criterion? c) Which option…
- ABC Condominium Corp. of Baguio City, recently purchased land and is attempting to determine the size of the condominiumdevelopment it should build. It is considering three sizes of development: small (D1); medium (D2); and large (D3). With the threelevels of demand- low (S1), medium (S2) and high (S3), the company’s management has prepared the following profit payoff table: Decision Alternatives Low (S1) Medium (S2) High (S3) D1- Small Condo 400,000 400,000 400,000 D2- Medium Condo 100,000 600,000 600,000 D3- Large Condo (300,000) 300,000 900,000 Required:9. Assuming the probabilities for the state of nature are P(S1)=0.20; P(S2)=0.35 and P(S3)= 0.45, what decision should ABCCondominium Corp make?10. Using the information from No. 9, what is the relevant income in ABC's decision?11. Using information in No. 9 , at how much will the "Medium condo, high demand" payoff would be indifferent between the"Medium condo" and "Large condo” decisions, given all other…ABC Condominium Corp. of Baguio City, recently purchased land and is attempting to determine the size of the condominiumdevelopment it should build. It is considering three sizes of development: small (D1); medium (D2); and large (D3). With the threelevels of demand- low (S1), medium (S2) and high (S3), the company’s management has prepared the following profit payoff table: Decision Alternatives Low (S1) Medium (S2) High (S3) D1- Small Condo 400,000 400,000 400,000 D2- Medium Condo 100,000 600,000 600,000 D3- Large Condo (300,000) 300,000 900,000 Required:1. At how much will the "Medium condo, high demand" payoff would be indifferent between the"Medium condo" and "Large condo” decisions, given all other applicable data input items remain the same?2. Compute for the Expected Value of Perfect Information.an inventor had developed a system that allows visitors to museums, zoos and other attractions to get information at the touch of digital code. For example zoo patrons can listen to an announcement (recorded in a microship about each animal they see. it is anticipated that the device would be rent for ksh3 each the installation cost is sh 400,000. the abc zoo is interested in having the device installed but the management is uncertain about whether to take the risk.A financial analysis of the problem indicates that if more than 10 percent of zoo visitors rent the system the zoo will make profit. To help make the decision a random sample of 400 zoo visitor's is given details of the system capabilities and cost. if 48 people rent the device can the management of the zoo conclude at the 5 percent significance level that the investment would result in a profit
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- First Securities, Inc., an investment firm, has $380,000 on account. The chief investment officer would like to reinvest the $380,000 in a portfolio that would maximize return on investment while at the same time maintaining a relatively conservative mix of stocks and bonds. The following table shows the investment opportunities and rates of return. Investment Opportunity Rate of Return Municipal Bonds (X1) 0.095 High Tech Stock (X2) 0.146 Blue Chip Stock (X3) 0.075 Federal Bonds (X4) 0.070 a) The Board of Directors has mandated that at least 60 percent of the investment consist of a combination of municipal and federal bonds, at least 25 percent Blue Chip Stock, no more than 30 percent High Tech and Blue Chip Stock, and no more than 15 percent High Tech Stock. Based on above problem, how many constraints are in this problem? A) 3 B) 4 C) 5 D) 2 b) Based on part a, which of the…Federated Electronics, Ltd., manufactures display screensand monitors for computers and televisions, which it sellsto companies around the world. It wants to construct a new warehouse and distribution center in Asia to serve emerg-ing markets there. It has identified potential sites in the port cities of Shanghai, Singapore, Pusan, Kaohsiung, and HongKong and has estimated the possible revenues for each(minus construction costs which are higher in some citieslike Hong Kong). At each site the projected revenues are primarily based on these factors, (1) the economic condi-tions at the port including the projected traffic, infrastruc-ture, labor rates and availability; and expansion and modernization; and (2) the future government situationwhich includes the political stability, fees, tariffs, duties,and trade regulations. Following is a payoff table thatshows the projected revenues (in $ billions) for six years given the four possible combinations for positive and nega-tive port and…Q1. Without the market study, what is the best decision? Q2.What is the best decision if they revive an unfavourable report?