Zaki, a developer, has a plot of 20-acre land near Klang town. He is considering whether to build a row of single storey terrace houses or bungalow houses. He also has the option of not to proceed with the project. Given a favourable market, he estimate that he will earn a profit of RM60,000 if he builds single storey terrace houses and RM800,000 if he builds bungalow houses. However, with an unfavourable market condition, he estimates that he will lose RM100,000 with the single storey houses and RM400,000 with the bungalow houses. The probability of favourable market is 0.7. 1. Identify the problem 2. what is the objective to use 3. what is the problem and the method to use
Zaki, a developer, has a plot of 20-acre land near Klang town. He is considering whether to build a row of single storey terrace houses or bungalow houses. He also has the option of not to proceed with the project. Given a favourable market, he estimate that he will earn a profit of RM60,000 if he builds single storey terrace houses and RM800,000 if he builds bungalow houses. However, with an unfavourable market condition, he estimates that he will lose RM100,000 with the single storey houses and RM400,000 with the bungalow houses. The probability of favourable market is 0.7. 1. Identify the problem 2. what is the objective to use 3. what is the problem and the method to use
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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Zaki, a developer, has a plot of 20-acre land near Klang town. He is considering whether to build a row of single storey terrace houses or bungalow houses. He also has the option of not to proceed with the project. Given a favourable market, he estimate that he will earn a profit of RM60,000 if he builds single storey terrace houses and RM800,000 if he builds bungalow houses. However, with an unfavourable market condition, he estimates that he will lose RM100,000 with the single storey houses and RM400,000 with the bungalow houses. The probability of favourable market is 0.7.
1. Identify the problem
2. what is the objective to use
3. what is the problem and the method to use
this is a question on Quantitative analysis
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