Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 15, Problem 8P
Video Tech is considering marketing one of two new video games for the coming holiday season: Battle Pacific or Space Pirates. Battle Pacific is a unique game and appears to have no competition. Estimated profits (in thousands of dollars) under high, medium, and low demand are as follows:
Video Tech is optimistic about its Space Pirates game. However, the concern is that profitability will be affected by a competitor’s introduction of a video game viewed as similar to Space Pirates. Estimated profits (in thousands of dollars) with and without competition are as follows:
- a. Develop a decision tree for the Video Tech problem.
- b. For planning purposes, Video Tech believes there is a 0.6
probability that its competitor will produce a new game similar to Space Pirates. Given this probability of competition, the director of planning recommends marketing the Battle Pacific video game. Usingexpected value , what is your recommended decision? - c. Show a risk profile for your recommended decision.
- d. Use sensitivity analysis to determine what the probability of competition for Space Pirates would have to be for you to change your recommended decision alternative.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
A smallish urn contains 25 small plastic bunnies - 7 of which are pink and 18 of
which are white. 10 bunnies are drawn from the urn at random with replacement, and
X is the number of pink bunnies that are drawn.
(a) P(X = 5)=[Select]
(b) P(X<6) [Select]
Elementary StatisticsBase on the same given data uploaded in module 4, will you conclude that the number of bathroom of houses is a significant factor for house sellprice? I your answer is affirmative, you need to explain how the number of bathroom influences the house price, using a post hoc procedure. (Please treat number of bathrooms as a categorical variable in this analysis)Base on the same given data, conduct an analysis for the variable sellprice to see if sale price is influenced by living area. Summarize your finding including all regular steps (learned in this module) for your method. Also, will you conclude that larger house corresponding to higher price (justify)?Each question need to include a spss or sas output.
Instructions:
You have to use SAS or SPSS to perform appropriate procedure: ANOVA or Regression based on the project data (provided in the module 4) and research question in the project file. Attach the computer output of all key steps (number) quoted in…
Elementary StatsBase on the given data uploaded in module 4, change the variable sale price into two categories: abovethe mean price or not; and change the living area into two categories: above the median living area ornot ( your two group should have close number of houses in each group). Using the resulting variables,will you conclude that larger house corresponding to higher price?Note: Need computer output, Ho and Ha, P and decision. If p is small, you need to explain what type ofdependency (association) we have using an appropriate pair of percentages.
Please include how to use the data in SPSS and interpretation of data.
Chapter 15 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 15 - Prob. 1PCh. 15 - Southland Corporation’s decision to produce a new...Ch. 15 - Amy Lloyd is interested in leasing a new Honda and...Ch. 15 - Investment advisors estimated the stock market...Ch. 15 - Hudson Corporation is considering three options...Ch. 15 - Prob. 6PCh. 15 - Myrtle Air Express decided to offer direct service...Ch. 15 - Video Tech is considering marketing one of two new...Ch. 15 - Seneca Hill Winery recently purchased land for the...Ch. 15 - Hemmingway, Inc. is considering a $5 million...
Ch. 15 - The following profit payoff table was presented in...Ch. 15 - Suppose that you are given a decision situation...Ch. 15 - A firm has three investment alternatives. Payoffs...Ch. 15 - Alexander Industries is considering purchasing an...Ch. 15 - In a certain state lottery, a lottery ticket costs...Ch. 15 - Three decision makers have assessed utilities for...Ch. 15 - In Problem 22, if P(s1) = 0.25, P(s2) = 0.50, and...Ch. 15 - Translate the following monetary payoffs into...Ch. 15 - Consider a decision maker who is comfortable with...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- An environmental research team is studying the daily rainfall (in millimeters) in a region over 100 days. The data is grouped into the following histogram bins: Rainfall Range (mm) Frequency 0-9.9 15 10 19.9 25 20-29.9 30 30-39.9 20 ||40-49.9 10 a) If a random day is selected, what is the probability that the rainfall was at least 20 mm but less than 40 mm? b) Estimate the mean daily rainfall, assuming the rainfall in each bin is uniformly distributed and the midpoint of each bin represents the average rainfall for that range. c) Construct the cumulative frequency distribution and determine the rainfall level below which 75% of the days fall. d) Calculate the estimated variance and standard deviation of the daily rainfall based on the histogram data.arrow_forwardAn electronics company manufactures batches of n circuit boards. Before a batch is approved for shipment, m boards are randomly selected from the batch and tested. The batch is rejected if more than d boards in the sample are found to be faulty. a) A batch actually contains six faulty circuit boards. Find the probability that the batch is rejected when n = 20, m = 5, and d = 1. b) A batch actually contains nine faulty circuit boards. Find the probability that the batch is rejected when n = 30, m = 10, and d = 1.arrow_forwardTwenty-eight applicants interested in working for the Food Stamp program took an examination designed to measure their aptitude for social work. A stem-and-leaf plot of the 28 scores appears below, where the first column is the count per branch, the second column is the stem value, and the remaining digits are the leaves. a) List all the values. Count 1 Stems Leaves 4 6 1 4 6 567 9 3688 026799 9 8 145667788 7 9 1234788 b) Calculate the first quartile (Q1) and the third Quartile (Q3). c) Calculate the interquartile range. d) Construct a boxplot for this data.arrow_forward
- Pam, Rob and Sam get a cake that is one-third chocolate, one-third vanilla, and one-third strawberry as shown below. They wish to fairly divide the cake using the lone chooser method. Pam likes strawberry twice as much as chocolate or vanilla. Rob only likes chocolate. Sam, the chooser, likes vanilla and strawberry twice as much as chocolate. In the first division, Pam cuts the strawberry piece off and lets Rob choose his favorite piece. Based on that, Rob chooses the chocolate and vanilla parts. Note: All cuts made to the cake shown below are vertical.Which is a second division that Rob would make of his share of the cake?arrow_forwardThree players (one divider and two choosers) are going to divide a cake fairly using the lone divider method. The divider cuts the cake into three slices (s1, s2, and s3). If the choosers' declarations are Chooser 1: {s1 , s2} and Chooser 2: {s2 , s3}. Using the lone-divider method, how many different fair divisions of this cake are possible?arrow_forwardTheorem 2.6 (The Minkowski inequality) Let p≥1. Suppose that X and Y are random variables, such that E|X|P <∞ and E|Y P <00. Then X+YpX+Yparrow_forward
- Theorem 1.2 (1) Suppose that P(|X|≤b) = 1 for some b > 0, that EX = 0, and set Var X = 0². Then, for 0 0, P(X > x) ≤e-x+1²² P(|X|>x) ≤2e-1x+1²² (ii) Let X1, X2...., Xn be independent random variables with mean 0, suppose that P(X ≤b) = 1 for all k, and set oσ = Var X. Then, for x > 0. and 0x) ≤2 exp Σ k=1 (iii) If, in addition, X1, X2, X, are identically distributed, then P(S|x) ≤2 expl-tx+nt²o).arrow_forwardTheorem 5.1 (Jensen's inequality) state without proof the Jensen's Ineg. Let X be a random variable, g a convex function, and suppose that X and g(X) are integrable. Then g(EX) < Eg(X).arrow_forwardCan social media mistakes hurt your chances of finding a job? According to a survey of 1,000 hiring managers across many different industries, 76% claim that they use social media sites to research prospective candidates for any job. Calculate the probabilities of the following events. (Round your answers to three decimal places.) answer parts a-c. a) Out of 30 job listings, at least 19 will conduct social media screening. b) Out of 30 job listings, fewer than 17 will conduct social media screening. c) Out of 30 job listings, exactly between 19 and 22 (including 19 and 22) will conduct social media screening. show all steps for probabilities please. answer parts a-c.arrow_forward
- Question: we know that for rt. (x+ys s ا. 13. rs. and my so using this, show that it vye and EIXI, EIYO This : E (IX + Y) ≤2" (EIX (" + Ely!")arrow_forwardTheorem 2.4 (The Hölder inequality) Let p+q=1. If E|X|P < ∞ and E|Y| < ∞, then . |EXY ≤ E|XY|||X|| ||||qarrow_forwardTheorem 7.6 (Etemadi's inequality) Let X1, X2, X, be independent random variables. Then, for all x > 0, P(max |S|>3x) ≤3 max P(S| > x). Isk≤narrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Hypothesis Testing using Confidence Interval Approach; Author: BUM2413 Applied Statistics UMP;https://www.youtube.com/watch?v=Hq1l3e9pLyY;License: Standard YouTube License, CC-BY
Hypothesis Testing - Difference of Two Means - Student's -Distribution & Normal Distribution; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=UcZwyzwWU7o;License: Standard Youtube License