The following payoff matrix shows the various profit outcomes for 3 projects, A, B, and C, under 2 possible states of nature: the product price is $15 or the product price is $25.ProfitProjectAP= $1560B-28C40Using the maximax rule, the decision maker would choose...Multiple ChoiceA.B.P = $2580160100impossible to say from the information given

A criterion used in decision-making that seeks to maximize the highest potential payoff is called…

Answered: The following payoff matrix shows the…

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...

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Quarterly sales of PnP (in hundred million Rands) from 2000 to 2004 are given in the table below: Q1 Q2 Q3 Q4 2000 5 6 8 9 2001 6 8 9 11 2002 10 9 12 10 2003 13 10 15 10 2004 14 16 15 14 What is the five period moving average for 2002_Q2 (round off to one decimals). A. 10.8 B. 10.4 C. 10.2 D. 10.0
4. Spears Rowbuck has recorded the following sales figures. Calculate the seasonal indices for Thursday and Friday. Week 1 Week 2 Week 3 Week 4 Monday 43 51 40 66.0 Tuesday 45 41 57 58.6 Wednesday 22 37 30 34.7 Thursday 25 22 33 36.7 Friday 31 25 37 25.0 a. Thursday = 29.18, Friday = 29.50 b. Thursday = 0.2074, Friday = 1.1632 c. None of the other options. d. Thursday = 0.7678, Friday = 0.7763 e. Thursday = 0.6142, Friday = 0.6211
Decision matrix below consists of COSTS expected, determine which alternative is dominant using with and without probability techniques (use a 35 and probability of: 20%, 15% ; 15% ; 25% & 25% for S1, S2, 53, 54 and 55 respectively): Using EVPI, what is the computed value. Alternatives S2 53 A1 18 15 A2 20 14 A3 16 25 SI 12 7 13 S4 8 12 10 $5 11 16 17
In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being considered as: Select one: a. negative cost b. cost c. benefit d. disbenefit =================== Ali takes out a loan at 10 percent compounded annually for 7 years. At the end of this period, he pays off the loan at a value of $23,384.61. What amount did he borrow? Select one: a. $12,000.00 b. $15,000.00 c. $14,000.00 d. $13,000.00 ============= While considering the engineering economy concepts, the most important tense almost all exercises deal with is the annual worth. Select one: True False Ans all
kindly answer b c d as per the guidelines, pls answer it manually thanks!
9
Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands. Order size 1 lot 2 lots 3 lots (a) Show a regret table. Order size 1 lot 2 lots 3 lots 13 9 6 Low 13 9 6 Low Demand Medium 16 24 32 16 24 32 High 16 32 61 Demand Medium (b) What decision should be made by the optimist? O 1 lot O2 lots 3 lots 16 32 61 High Maximum Regret 2:06 PM
The XY Manufacturing Company must decide whether to manufacture a component 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): Decision Alternative Manufacture, d₁ Purchase, d₂ Low Demand $1 -100 50 State of Nature Medium Demand S2 200 225 High Demand S3 500 350 MA The state-of-nature probabilities are P(s₁) = 0.35, P(s₂) = 0.35, and P(S3) = 0.30. a. Use a decision tree to recommend a decision. b. Use EVPI to determine whether XY Manufacturing Company should attempt to obtain a better estimate of demand.
II. + James Scott is considering the possibility of opening a small outfit shop on Sta. Maria District, a few blocks from St. Green Ville College. She has located on a mall that attracts students. To open a small shop, medium sized shop, or no shop at all are her options. The market can be good, average, or bad. The probabilities for these three possibilities are 30% for good market, 50% for an average market, and 20% for bad market. The profit or loss for the said market conditions are given in the table below; ALTERNATIVE Small Shop Medium Sized Shop No Shop GOOD 150,000 200,000 0 AVERAGE 50,000 70,000 0 a) Calculate the Expected Value of Perfect Information (EVPI) b) What do you recommend? BAD -80,000 -120,000 0
kindly do solve accurately and exact with correct formuas thanks..with complete steps
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1. Kirsten is trying to decide where to go for her well-earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel. Given the costs and probabilities of bad weather given below, which destination should she choose? Camping cost Motel cost Probability of bad weather Nevada $21.2 $80.9 0.2 Oregon $15.9 $84.6 0.4 California $30 $95 0.1 a. California, because its EMV = $33.14 b. Nevada, because its EMV = $33.14 c. California, because its EMV = $36.5 d. Any of the 3 choices. e. Oregon, because its EMV = $43.38 f. Nevada, because its EMV = $43.38 g. None of the 3 choices. h. Oregon, because its EMV is $36.50.

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