QUESTION 2Study the table below and use it to answer the questions that follow and calculate the ExpectedMonetary Values (EMV) of the different outcomes.DECISION TABLE WITH CONDITIONAL VALUESSTATE OF NATUREFAVORABLE OUTCOMEUNFAVORABLE OUTCOME($)300,000ALTERNATIVE($)Construct a Large Plant-150,000Construct a Small Plant120,000-30,000No PlantProbability0.50.5

Answered: Image /qna-images/answer/b4375d43-c9d7-450a-81a9-3e84bee0d99e.jpg

Answered: QUESTION 2 Study the table below and…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, 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 thousands of dollars): State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. What is Gorman's optimal decision strategy?Decision strategy:If F then .If U then . What is the expected value of the market research information?Expected value: $ What is the efficiency of the information? If required, round your answer to one decimal place.Efficiency:
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Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $20 per unit per year, and the cost of a stockout is $80 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? Demand During Lead Time 0 100 200 300 400 Probability 0.2 The optimal quantity of safety stock which minimizes expected total cost is number). 0.2 0.2 0.2 0.2 units (enter your response as a whole
Question 5: A department store prints scratch-and-save discount coupons to distribute to its customers. The numbers for each present discount are shown in the table. Present Discount Number of Each type of discount Available 60% 50 50% 25000 30% 50000 10% 500,000 Determine the expected percent discount. Question 6: An examination consists of 50 multiple-choice items, each with 4 possible answers. what is the probability of guessing 25 or more correct answers? Question 7: A. bank found that 25% of its loans to new small business become delinquent. Ten small business are selected randomly from the bank's files. a) what is probability that three of them are delinquent? b) what is the probability that at least three of them are delinquent? c) what is the expected delinquency? B. Geometric Distribution Q8: Explain why rolling a die until 3 shows can be modelled by a geometric distribution
Payoffs in this lottery are given by the following: p(x) $100 .15 $60 .25 $20 .10 $10 .30 $40 .20 a) Find this lottery's expected value b) Find the probability that a person will win more than $20.
5
C. Determine how much the firm would be willing to pay to a market research firm to gain better information about future market conditions. 10. An investor must decide between two altemative investments-stocks and bonds. The return for each investment, given two future economic conditions, is shown in the following payoff table: Economic Conditions Investment Good Bad Stocks S10,000 S-4.000 Bonds 7.000 2,000 What probability for each economic condition would make the investor indifferent to the choice between stocks and bonds? 11.In Problem 5, Ann Tyler, with the help of a financial newsletter and some library research, has been able to assign probabilities to each of the possible interest rates during the next year, as follows:
The following maintenance alternatives are considered for a new assembly line that has an acquisition cost of $250,000. Each has distinct service life expectancies and corresponding probabilities. Determine the maintenance regime most likely to yield an annualized overall cost less than $32k, given an annual rate of 7%. Maintenance regime $0 throughout life $25000 (in year 4) $35,000 (years 3 and 6) $75,000 (year 6) 7 (0.2) 8 (0.15) 10 (0.25) 12 (0.3) Service life years (probability) 8 (0.6) 10 (0.5) 12 (0.5) 13 (0.33) 15 (0.37) 9 (0.2) 12 (0.35) 14 (0.25)
A payoff table is given as S1 S2 S3 D1 250 750 500 D2 300 -250 1200 D3 500 500 600 a. What choice should be made by the optimistic decision maker? b. What choice should be made by the conservative decision maker? c. What decision should be made under minimax regret? d. If the probabilities of d1, d2, and d3 are .2, .5, and .3 respectively, then what choice should be made under expected value?
A test has three parts. Part A consists of seven true-false questions, part B consists of three multiple-choice questions with five choices each, and part C requires you to match three questions with three different answers one-to-one. Assuming that you make random guesses in filling out your answer sheet, what is the probability that you will earn 100% on the test? (Leave your answer as a formula.) P(E) O P(E) O P(E) = P(E) = P(E) = = = 1 7² x 5³ x 3! 1 27 x 5³ x 3! 1 3² x 53 1 2³ x 35 x 7! x 7! 1 23 x 75 x 3!
Bakery Products is considering the introduction of a new line of products. In order to produce the new line, the bakery is considering either a major or minor renovation of the current plant. Bakery Products has the option of not developing the new line at all. The decision alternatives are shown in the payoff table below as well as the states of nature and probabilities. Payoffs are profits; States of Nature with Profits ($) Decision Alternatives Favourable (F) Neutral Market (U) Unfavourable (U) Major Renovation Minor Renovation $10,000 $5,000 $0 $4,000 $2,000 $0 - $9,000 - $2,000 $0 Do Nothing Probability 0.3 0.4 0.3 Before making the final decision, Bakery Products can pay a market research firm $500.00 to survey consumer attitudes towards the company's products. The results can be either “vibrant" or “limp". The reliability of the company, based on past performance, is given below. Conditional Probability For A Given state of nature Survey Results Vibrant (V) Limp (L) Favourable…
Refer to the following payoff table: State of Nature Alternative S1 S2 A1 75 −40 A2 0 100 Prior Probability 0.6 0.4 There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is S1, the research will accurately predict S1 60% of the time. When the true state of nature is S2, the research will accurately predict S2 80% of the time. What is the posterior probability of S1 given that the research predicts S1? Multiple Choice: 0.18 0.82 0.57 0.44 0.65

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