Management, 13Th Edition
13th Edition
ISBN: 9780133910292
Author: Stephen P. Robbins & Mary A. Coulter
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 11ED
Summary Introduction
To explain:
Facts for and against the decision to remove a sports championship title of one team and offering it to another team.
Introduction:
The case states of an incident where a championship title of children’s sports team was removed and was given to another team as a result of a scandal done by the team officials. The appropriateness of this decision made by the chief executive officer of the institution organizing the said sports event has been subject to much discussion. Making decisions is part and parcel of any manager’s work life. However, there shall be instances where the validity or appropriateness of such decisions is questionable.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Wired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown.
Construct an Opportunity Loss (Regret) table. What decision should be made under Maximax Regret?
4. Transrail is bidding on a project that it figures will cost $400,000 to perform. Using a 25% markup, it will charge $500,000, netting a profit of $100,000. However, it has been learned that another company, Rail Freight, is also considering bidding on the project. If Rail Freight does submit a bid, it figures to be a bid about $470,000. Transrail really wants this project and is considering a bid with only a 15% markup to $460,000 to ensure winning regardless of whether or not Rail Freight submits a bid.
a. Prepare a profit payoff table from Transrail’s point of view. (6 points)
b. For this payoff table find Transrail’s optimal decision using (1) the pessimistic approach, (2) the optimistic approach, and (3) minimax regret approach. (10 points)
c. If Rail Freight is known to submit bids on only 25% of the projects it considers, what decision should Transrail make? (5 points)
d. Given the information in (c), what is EVPI? (5 points)
Pls help ASAP on both
Knowledge Booster
Similar questions
- When choosing whether to make, lease, or buy, a manager must consider the profits to be made under each consideration. Group startsTrue or Falsearrow_forwardYour Task For each scenario, discuss the following: - What is the issue (there may be more than 1)? - Who are the parties affected? - List and explain 2 alternatives for handling each situation o Discuss 2 pros and 2 cons for each alternative - What is your conclusion? Discuss the best way to handle each situation - use reasoning to justify your decision Situation You are the owner of a small craft store. When doing the scheduling, you put Judi on the Friday shift. On Tuesday, Judi comes to you and says that she cannot work. You remind Judi that she needs to tell you the days she is unavailable at least one week in advance. You insist that she work on Friday. At 7:00 a.m. on Friday, Judi calls in sick. You must take Judi's shift-giving up your only day off. When making deliveries for the store, you see Judi eating lunch on Friday in a local restaurant.arrow_forwardGiven the following payoff table with the profits ($m), a firm might expect alternative investments (A, B, C) under different levels of interest rate. payoffs as profits states of nature 1(5%) decision 2(7%) 3(9%) alternatives A 14 22 6. B 19 18 11 12 17 15 (a) Which alternative should the firm choose under the maximax criterion? (b) Which option should the firm choose under the maximin criterion? (c) Which option should the firm choose under the LaPlace criterion? (d) Which option should the firm choose with the Hurwicz criterion with a = 0.2? (e) Using a minimax regret approach, what alternative should the firm choose? (f) Economists have assigned probabilities of 0.35, 0.3, and 0.35 to the possible interest levels 1, 2, and 3 respectively. Using expected monetary values, what option should be chosen and what is that optimal expected value? (g) What is the most that the firm should be willing to pay for additional information? Use Expected Regre (h) Use the alternative method to…arrow_forward
- Problem #4 - Jasper Inc. would like you to provide consulting services and provide recommendation on building a new assembly facility for air conditioning units in Florida. Jasper's initial assessment indicates the following conditions for this decision-making problem: With a favorable market in Florida, Jasper thinks that a large facility would result in a net profit of $200,000 to his firm. If the market is unfavorable in Florida, the construction of a large facility would result in $190,000 net loss. - A small facility would result in a net profit of $100,000 in a favorable market, but a net loss of $20,000 would occur if the market was unfavorable. Doing nothing would result in $0 profit in either market conditions. a) Create a decision table for this problem. b) What is your recommendation if y would apply the Maximax criterion (Optimistic)? C What is your recommendation if you would apply the Criterion of Realism (Hurwicz Criterion) with a erricient of realism a = 0.9? d) What is…arrow_forwardper board and fixed costs of $300,000. Determine: The number of skateboards required to sell to breakeven. The profit if they have been selling about 8,000 pr year. a) Now, they are considering undertaking an advertising program with GBC Promotions that would cost $150,000 (additional fixed cost) and increasing the price by $160 to $400. Find the number of skateboards required to sell at $400 and make the same amount of profit as in part “b”. b) What is the % sales decline that can occur in c, to make the same profit as beforearrow_forward4. In January 2014, Buckeye Engineering had grown to a company with $25-million in sales. The business base consisted of two contracts with the US Department of Energy (DOE), one for $15-million and one for $8-million. The remaining $2-million consisted of a variety of smaller jobs for $15,000 to $50,000 each. The larger contract with DOE was a five-year contract for $15-million per year. The contract was awarded in 2009 and was up for renewal in 2014. DOE had made it clear that although they were very pleased with the technical performance of Buckeye, the follow-up contract must go through competitive bidding by law. Marketing intelligence indicated that DOE intended to spend $10-million per year for five years. On the follow-up contract with a tentative award date of October 2014. On June 21, 2014, the solicitation for proposal was received by Buckeye. Technical requirements of the proposal request were not considered to be a problem for Buckeye. There was no doubt in anyone's mind…arrow_forward
- To assist in their promotions and appraisals, Mazen analyzed and graded the performance of his team members for the previous year. He is sure of his decisions, and the various outcomes, as he had all the needed information. This type of environment that is ideal for decision making is known as a(n) Uncertain environment. Risk environment. Certain environment. Threat environment.arrow_forwardPlease helo me with this questionarrow_forwardDescribe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $100,000. When this same manager is given an annual, fixed salary of $100,000 and 4 percent of the firm’s profits—amounting to $130,000 per year—the manager chooses to work eight hours and shirks for two hours. Explain which of the compensation schemes the manager prefersarrow_forward
- Pls help ASAP for botharrow_forwardWired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown. What decision should be made using the Maximin criterion?arrow_forwardYour Task For each scenario, discuss the following: - What is the issue (there may be more than 1)? - Who are the parties affected? - List and explain 2 alternatives for handling each situation o Discuss 2 pros and 2 cons for each alternative What is your conclusion? Discuss the best way to handle each situation - use reasoning to justify your decision Situation You manage a catalog phone center|where each of your 20 workers answers phones all day in one of four cubicles. You have just received another complaint from one of the women in the department. She is disturbed because one of the workers in her cubicle has put pictures of women in bathing suits up all over his workspace. She finds this offensive. She had asked him to remove the pictures, but he refused. This is the second time a complaint of this nature has taken place. Last time you switched him to another cubicle.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON