» kie 25.1. A company is contemplating the introduction of a new product with new packing toreplace the existing product at much higher Price (Pj) or a moderate change in the composition of theeristing product with a new packaging at a small increase in price (P2) or a small change in thecomposition of the existing product except the word "new" with a very small increase in price (P3). Thethree possible states of nature are : (i) high increase in sales (n), (ii) no change in sales (n), and(ii) decrease in sales (n3). The marketing department of the company calculated the payoffs in terms ofyearly net profits from each of the strategies (expected sales). This is represented in the following table :StrategiesStates of Naturen31500n23000450030007000P1P2P3500030003000Which strategy should the concerned executive choose on the basis of:(i) Maximin criterion,(ii) Laplace criterion ?

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Answered: » ke 25-1. A company is contemplating…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Number 40
The XY Manufacturing Company must decide whether to manufacture acomponent part at its plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in ten thousand of pesos): State of Nature State of Nature State of Nature Decision Alternative Low DemandS_(1) Medium DemandS_(2) High DemandS_(3) Manufacture, d_(1) -100 200 500 Purchase, d_(2) 50 225 350 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. c. A test market study of the potential demand for the product is expected to reporteither a favorable (F) or unfavorable (U) condition. The relevant conditional probabilities are as follows:What is the probability that the market research report will be favorable?
The value of the Conference Board Index of 10 economic indicators in the United States could be approximated by the following function of time in months since the end of December 2002. Jo.se + 150 fosts 15 -0.21 160.5 i 15
5. (i) Show that the chance that an exponentially distributed variable takes on a value below its mean is more than 60% and that the chance that the value will be below half of the mean is almost 40%. (ii) When are exponentially distributed interarrival (service) times reasonable / unrea- sonable for a queuing system?
5. A patient initially has a concentration of 50mg/L of morphine in her blood and 70mg/L in her cerebrospinal fluid. Suppose that the drug moves into the cerebrospinal fluid at a per-capita rate of .4 and that the amount that is moved back from the cerebrospinal fluid to the bloodstream is .2. Suppose further that the metabolism of medicine in the bloodstream is .1 and the metabolism of the drug in the cerebrospinal fluid is .2 Blood cerebrospinal fluid ( brain ) Let x(t) represent the concentration in the blood and y(t) represent the concentration in the brain area. Finish this compartment diagram. Explain why this is a mathematical model for this process. dx = -.5x + .2y dt dy = .4x – 4y dt Solve for x(t) and y(t) given the initial conditions stated above. Simplify each expression as much as possible and write them in the blanks below. On the next page you must show all of your calculations. X(t)= Y(t)= .
4. Suppose your professor informs you that the course will be graded on a curve so that no matter how well you know the material, only 40 percent of students will get As, 40 percent will get Bs, and the rest will get Cs. This means you must work hard in absolute terms and also relative to your classmates. Use an extensive form model to describe the likely progression of this scenario.
1. A company is contemplating the introduction of a new product with new packing to replace the existing product at much higher Price (P) or a moderate change in the composition of the existing product with a new packaging at a small increase in price (P2) or a small change in the composition of the existing product except the word "new" with a very small increase in price (P3). The three possible states of nature are : (i) high increase in sales (n), (ii) no change in sales (n), and (iii) decrease in sales (na). The marketing department of the company calculated the payoffs in terms of yearly net profits from each of the strategies (expected sales). This is represented in the following table : Strategies States of Nature 3000 1500 PI P2 P3 7000 5000 3000 4500 3000 3000 Which strategy should the concerned executive choose on the basis of: (i) Maximin criterion, (ii) Laplace criterion ?

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