Susan Solomon has been thinking about starting her own fuel station, but Susan's problem is to decide how large the station should be. The annual returns depend on both the size of the station and a number of market factors related to the oil industry and the demand for fuel. After careful analysis, Susan developed the following table: Fair Market (Rand) Poor Market (Rand) Size of the station Good Market (Rand) Small 50 000 20 000 -10 000 Medium 80 000 30 000 -20 000 Large 100 000 30 000 -40 000 Very Large 300 000 25 000 -160 000 For example, if Susan constructs a small station and the market is good, she will realise a profit of R50 000. Use the minimax regret and Hurwics (a=0.8) to assist Susan with her decision.

Susan Solomon has been thinking about starting her own fuel station, but Susan's problem is to decide how large the station should be. The annual returns depend on both the size of the station and a number of market factors related to the oil industry and the demand for fuel. After careful analysis, Susan developed the following table: Fair Market (Rand) Poor Market (Rand) Size of the station Good Market (Rand) Small 50 000 20 000 -10 000 Medium 80 000 30 000 -20 000 Large 100 000 30 000 -40 000 Very Large 300 000 25 000 -160 000 For example, if Susan constructs a small station and the market is good, she will realise a profit of R50 000. Use the minimax regret and Hurwics (a=0.8) to assist Susan with her decision.

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

Similar questions

What are common mistakes made in the problem definition stage of problem-solving?
An engineer designed a valve that will regulate water pressure on an automobile engine. The engineer designed the valve such that it would produce a mean pressure of 7.2 pounds/square inch. It is believed that the valve performs above the specifications. The valve was tested on 290 engines and the mean pressure was 7.3 pounds/square inch. Assume the standard deviation is known to be 0.6. A level of significance of 0.02 will be used. Determine the decision rule. Enter the decision rule.
Lahey Motors specializes in selling cars to buyers with a poor credit history. Listed is the number of cars that were repossessed from Lahey customers because they did not meet the payment obligations over each of the last 36 months. 9 6 10 3 11 12 9 22 12 4 10 11 3 10 11 15 20 20 7 10 10 9 15 8 12 10 12 16 9 16 13 5 7 10 10 11 a. Find the control limits from the c-bar data for the number repossessed. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.) Mean number of defects per unit LCL UCL b. Were there any months when the number was out of control? multiple choice Yes No
Elon Corporation manufactures parts for an aircraft com-pany. It uses a computerized numerical controlled (CNC) machining center to produce a specific part that has adesign (nominal) target of 1.275 inches with tolerancesof 0.024 inch. The CNC process that manufacturesthese parts has a mean of 1.281 inches and a standarddeviation of 0.008 inch. Compute the process capabilityratio and process capability index, and comment onthe overall capability of the process to meet the designspecifications.
S Book Hint Print eferences Problem 13-2 (Algo) A metal fabricator produces connecting rods with an outer diameter that has a 1 ± 0.02 inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.004 inches with a standard deviation of 0.006 inch. Calculate the process capability index for this example. (Round your answer to 3 decimal places.) Process capability index
Q11) In the visual-fit method, the cost analyst visually fits a straight line through a plot. Select one: True False
What is DFD leveling and fata process modeling?
HP can make use of the observation methods to determine consumers' preferences for PCs and notebooks. * False True Purchase Panels provide specific information, regularly over extended period of time * True False
Discuss what we mean by multipole moments.
A manufacturer of chocolate chips would like to know whether its bag filling machine works correctly at the 438.0 gram setting. It is believed that the machine is underfilling the bags. A 46 bag sample had a mean of 436.0 grams. A level of significance of 0.05 will be used. Determine the decision rule. Assume the variance is known to be 400.00. Enter the decision rule.
When observations can be placed into oneof two categories. Examples include items(observations) that can be classified asa. Good or badb. Pass or failc. Operate or don’t operate
BlueMoon Bottlers has a bottle-filling process with a mean value of 64 ounces and a standard deviation of 8 ounces. Suppose the upper and lower specification limits are 71 and 57 ounces, respectively. What is the process capability index of this process? (Note: You MUST show every single step and detailed derivation for full credit)