subject: Quantitative Analysis For Business Please answer both. 18. A pizza restaurant would like to add fresh ingredients which are available during the summer to the menu. Only three items may be added, which is a first-time offer to patron. There are five menu items under consideration: spinach salad, cucumber cocktail, stuffed olives, steamed broccoli, and fried eggplant. A survey is underway to measure patrons' preferences. Which step of the decision model does the survey represent? Choosing the best alternative Generating alternatives Listing alternatives Evaluating alternatives An athletic equipment store offers an annual clearance sale every May. The store sells all the accumulated overstocked and discontinued items that have been stored in a warehouse for the last 12 months. Because there is so much inventory, the sale is usually held in the store's parking lot; however, it has rained several times during the event in the past, and the store's owner is considering changing event location this year. The table below shows four alternatives and their costs. The probability for a rainy or sunny day is shown, and the estimated revenue for each location and each type of weather are also provided. Alternative (Cost) Rainy Sunny Stay in parking lot ($500) $5,000 $20,000 Hold event inside store ($800) $11,000 $18,000 Hold event inside warehouse ($1,200) $10,000 $16,000 Hold event inside rented space near the store ($1,500) $12,000 $17,000 Probability 0.70 0.30 If the expected value for each option is calculated, which alternative should the store owner select? Hold the event inside the rented space near the store Hold event inside the store Hold event inside warehouse Stay in parking lot

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

subject: Quantitative Analysis For Business

Please answer both.

18. A pizza restaurant would like to add fresh ingredients which are available during the summer to the menu. Only three items may be added, which is a first-time offer to patron. There are five menu items under consideration: spinach salad, cucumber cocktail, stuffed olives, steamed broccoli, and fried eggplant. A survey is underway to measure patrons' preferences.

Which step of the decision model does the survey represent?

Choosing the best alternative
Generating alternatives
Listing alternatives
Evaluating alternatives

An athletic equipment store offers an annual clearance sale every May. The store sells all the accumulated overstocked and discontinued items that have been stored in a warehouse for the last 12 months. Because there is so much inventory, the sale is usually held in the store's parking lot; however, it has rained several times during the event in the past, and the store's owner is considering changing event location this year. The table below shows four alternatives and their costs. The probability for a rainy or sunny day is shown, and the estimated revenue for each location and each type of weather are also provided.

Alternative (Cost)	Rainy	Sunny
Stay in parking lot ($500)	$5,000	$20,000
Hold event inside store ($800)	$11,000	$18,000
Hold event inside warehouse ($1,200)	$10,000	$16,000
Hold event inside rented space near the store ($1,500)	$12,000	$17,000
Probability	0.70	0.30