Suppose a distribution center is considering three options forexpansion. The first one is to expand into a new plant, the secondto add on third-shift to the daily schedule, and third, a smallexpansion to the existing facility. There are three possibilities fordemand. These are high, medium, and low having probabilities of40%, 33%, and 27% respectively. Suppose that the profits for theexpansion plans are as follows: The new plant expected outcomesare $110,000, $50,000, -$15,000, the third shift considerationwould result in outcomes of $40,000, $20,000, $-5,000 and thesmall expansion choice would in the following dollar amounts$15,000, $13,000, -$1,500. The amount that the company mustinvest in each alternative is: new plant = $48,000, third shift =$15,100, small expansion = $8,700a. The profit/loss (EMV) for the new plant is $[Select]b. The profit/loss (EMV) for adding a third shift is $[Select]c. The profit/loss (EMV) for the small expansion is $[Select]d. Which of the expansion plans should the manager choose?[Select]e. What if an outside consultant was hired by the organizationand the probabilities were re-evaluated as a result of betterinformation. The results of the research/feedback are now: 30%,37%, 33% (high, medium, low). What choice should the managermake and what is the EMV? [Select]

Given that, A distribution center is considering three options for expansion. Since you have posted…

Answered: Suppose a distribution center is…

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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13-10. A survey conducted over the last 25 years indicated that in 10 years the winter was mild, in 8 years it was cold and in the remaining 7 years it was very cold. A company sells 1000 woollen coats in a mild year, 1300 in a cold year and 2000 in a You are required to find the yearly expected profit of the company if a woollen coat costs Rs. 1730 and it is sold to stores for Rs. 2480. very cold ye year.
3. A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists, profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Gasoline Availability Investment Shortage Stable Supply Surplus Motel Restaurant Theater S 8,000 2,000 6,000 S15,000 8,000 6,000 $20,000 6,000 5,000 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz(a = .4) e. Equal likelihood %3D 4. A television network is attempting to decide during the summer which of the following three football games to televise on the Saturday following Thanksgiving Day: Alabama yersus Auburn, Georgia versUs Georgia Tech or Army versus
An investor plans to put $50,000 in one of four investments. The return on each investment depends on whether next year's economy is strong or weak. The following table summarizes the possible payoffs, in dollars, for the four investments. Certificate of deposit Office complex Land speculation Technical school Next year's economy Strong 7,000 15,000 32,500 6,000 Weak 7,000 4,500 - 17,000 12,000 Let V, W, X, and Y denote the payoffs for the certificate of deposit, office complex, land speculation, and technical school, respectively. Then V, W, X, and Y are random variables. Assume that next year's economy has a 30% chance of being strong and a 70% chance of being weak. a. Find the probability distribution of each random variable V, W, X, and Y. What is the probability distribution for V? V 7,000 P(V=v)
Discuss two extensions to the original GARCH (p,q) model and explain additional characteristics of financial data they might be able to capture.
1. Redback Industries is a relatively small but successful and fast-growing maker of peripheral devices for cell phones including battery chargers, enhanced antennas, SIM cards, and custom carrying cases. Costco is considering purchasing Redback in order to sell the devices as private label offerings. However, Costco has set an offer price of $ 600M that depends on whether Redback’s current Annual Net Income is higher and significantly different from its 14-year average of $ 104.5M per year; Redback has indicated it is willing to sell itself to Costco at the $600M price. Use the following information to determine at the 95 % Level Of Confidence whether Costco will proceed with the purchase at the planned price of $ 600M or will lower its offering price if Redback’s current Annual Net Income is not greater than $ 104.5M per year. Redback Industries Normalized Yearly Annual Net Income over the last 14 years is $ 104.5M Redback Industries is currently reporting Yearly Annual Net…
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An entrepreneur who owns and operates two businesses (A and B) would like to analyze their profitability. They would like your help in the analysis. They give you the annual net profit (in thousands of $) for each business from 2008-2020. Table 1: Annual Net Profits for Businesses A and B Business Year Profit Business Year Profit 2008 -50 2008 -10 2009 57 2009 30 2010 71 2010 27 2011 64 2011 22 2012 60 2012 21 2013 50 2013 20 A 2014 41 2014 24 2015 59 2015 24 2016 71 2016 32 2017 71 2017 36 2018 74 2018 37 019 81 20 40 2020 97 2020 49 a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that? d. Suppose that instead of having 26 observations you have 200 observations. What graph should you generate? e. What other type of…

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