Question

Business Analytics

Harry's Hardware does a brisk husivess during the yeasr, bun daringCsea sells Christmas trees for a subetanial profit. Unfonurmely,an season ate tnially worthicss. Thus. ihe nubrol urces that an sukdter important decision. The tollowing tahle tevcals the denand ior Chries tees Tan soa DEM AND FOR C RISTMAS TREES PROBABLITY 123 130 173 200 0.2 0.3 0.2 04)5 Harry sells trees tor $15 cach, but his cust is only S6 a How mary trees should Hary (b) If the cost increascd to $12 per tuee. (a) at hia hoardancsur arty is thinking ahout increasing the prie to 1 per te) H e cst increased to $12 per tree, how mans trees 50,15,xi, or cost per iree is S6. n is expected inat the pricathan 125 it babiity of seing, 125 trees wil be 0.25ea. Harry does pot expect to seW mre t with his price increase. What do you recomm odd jobs contracted with the school to produce and sci programs at o hrmond is paying her way through college hy working at varis d s at ouibaM games, l e are worthless. Demad Should Katie produce for the upcoming game (ound of to the nearest unit? own and Fanじy Foot are both vving for more share of the market. If Shoe Town does s 30 cents each and thcy sell for S1.25 each. Any not suld at the garne ae distriu for programs at each game is is normally distributed with a mean of 2,500 and a standard deviation of o advertising, it will not lose any share of the market if Faney Foot does nothing, It wild losc 29o ot the market if Fancy Foot invests S 10 000 rı advertising, andit ill kse 5% of the market if Fancy l'oot invests $20,000 in advertisins. On the other bandif Shoe Town invests $15,000 in advertising. it will gain 3% of the market if Fancy Foot does nothin : it w ill gain 19 of the market if Fancy Foot hoe invests $10,000 in advertising; and it will lose 1% if Fancy Foot invests $20.00 in advertising (i). Develop a payoff table for tbis problem. (i. Determine the various strategies (iii). Determine the value of the game.

Answer 1

Demand PDemand - ら。 0.05 :00 75 0.aS (00 0-20 0.85 25 0 30 .20 O 35 0 15 오。 0.05 0.05 Hし:20 HP=80-20-60 = 0, 25 20 60 Stock 50 6) ML-35; MP = 80-35 = 45 MR/ML +MP)35 (35 +45) 0 4375 Shck 125

CCO) Demand PlDemahd) 50 0-25 I+ 00 75 0 25 0.25 O.25 0-75 (oO 0. 50 125 0.25 HL=20; NP=100-20 HLI HL MP) (2080 O.20 Stock 125