What is the main goal in decision analyses. Be specific and complete using terminology from the...
What is the main goal in decision analyses. Be specific and complete using terminology from the course.
Why perform sensitivity analysis? Of what use is sensitivity analysis where good probability estimates are difficult to obtain?
Homework Answers
1. Under the circumstances of uncertainty, when it becomes difficult to undertake any decision, the role of Decision analysis come into play. Its main goal is to facilitate the decision makers to make decisions especially when the scenario is a complex one and the level of certainty is relative very low. In terms of measurement of the quality of decisions made under decision analysis, it is based on the preferences that the decision makers have upon the scenario as well as the anticipated results out of the same.
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What is the main goal in decision analyses. Be specific and
complete using terminology from the...
Given the following table of profit payoffs, using sensitivity analysis at what probability would youb indifferent between decision A & B? States of Nature s2 Decision s1 20 0 16 4 0 0.40 0.8...
Given the following table of profit payoffs, using sensitivity analysis at what probability would youb indifferent between decision A & B? States of Nature s2 Decision s1 20 0 16 4 0 0.40 0.80 0.50
Given the following table of profit payoffs, using sensitivity analysis at what probability would youb indifferent between decision A & B? States of Nature s2 Decision s1 20 0 16 4 0 0.40 0.80 0.50
Several types of analyses are available for evaluating a project's risk. In the following table, correctly...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
First, what is a situational analysis, goal, objective, and strategy? Second, what is the relationship between...
First, what is a situational analysis, goal, objective, and strategy? Second, what is the relationship between a situational analysis, goal, objective, and strategy within a marketing plan? Third, can you give an example, using a situational analysis from an e-retailer/e-commerce that results in a specific goal, objective, and strategy? I’ll offer an oversimplified individual type of example to explain the relationship between a situational analysis which highlights a problem, a goal, an objective, and strategy which are connected and cohesive....
Ford is going to produce a new vehicle, the Bronco, and wants to determine the amount of annual capacity it should build. Ford's goal is to maximize the profit from this vehicle over the next 5 y...
Ford is going to produce a new vehicle, the Bronco, and wants to determine the amount of annual capacity it should build. Ford's goal is to maximize the profit from this vehicle over the next 5 years. The average vehicle will sell for $39,000 and incur a variable production cost of $26,000. Building one unit of annual capacity ill cost $2,000. Each unit of capacity will also cost $1,000 per year to maintain, even if capacity is unused. Demand for...
5. Regarding decision making from the results of data analyses, if our obtained probability is then...
5. Regarding decision making from the results of data analyses, if our obtained probability is then we can reject the which then supports the b greater than 05, null hypothesis, alterative hypothesis and that a true difference exists. below.10, null hypothesis, alternative hypothesis and that a true difference exists below.05, alternative hypothesis, null hypothesis and that a true difference exists below.05, null hypothesis, alternative hypothesis and that a true difference exists The essence of hypothesis testing is that we are...
constraints, also written in terms of decision variables (some using both decision supplement. In addition, the...
constraints, also written in terms of decision variables (some using both decision supplement. In addition, the Lecture notes page in this website gives you access Then you complete Task 1, you should have two decision variables, the ng constraints. We simply list all conditions that must objective function written in terms of those decision variables, and five 2. The second step is to find a solution. Task 2 tells you specifically to use Excel Solver to find this solution. The...
Qualitative Decision Analysis
Qualitative Decision Analysis Use the Six Thinking Hats qualitative process for answering this question. LEGO’s strategy is to make LEGO bricks from sustainable sources by 2030. They want to do this while maintaining product quality and safety. This long-term strategy will require many short-term and medium-term decisions. They have long term goal of making the whole business operation more sustainable. Some of the decisions needed year by year to make their sustainability strategy happen may include: Phasing out plastic used in packagingMaking more...
1. What is "risk in a financial sense. What is it that creates risk for companies? Please be specific. (3 pts.)...
1. What is "risk in a financial sense. What is it that creates risk for companies? Please be specific. (3 pts.) 2. Pick one of the 'subareas' of finance and provide an of what is involved in that subarea. (3 pts.) 3. Describe the role that ethics should play in finance. How do "fiduciary relationships affect this? (3 pts.) 4. Why do companies usually go through a "life-cycle" where they start out as sole proprietorships and then eventually become corporations....
#1 What is the HIV epidemic? (give specific details from your readings) #2 The main transmission...
#1 What is the HIV epidemic? (give specific details from your readings) #2 The main transmission routes of HIV are: 1. unsafe sex with an HIV-infected partner 2. sharing injection paraphernalia with an HIV-infected partner 3. vertical transmission of HIV from the HIV+ mother to the newborn (before or at birth; or later, due to breastfeeding) Research the cdc.gov website and search for statistics for these 3 transmission routes. What did you find? # 3 What is meant by the...
What decision should he make according to the maximax decision rule?
Question 1 East Van (EV) Distillery is a small boutique distillery that produces hand-craft batches of a number of different types of spirits. One of East Van’s most popular products is its high end home-made vodka. Each month EV must decide how many batches of their vodka to produce to match demand without producing too much. Excess vodka that cannot be sold by the end of the month depreciates in quality to the point that EV will not sell it...
Given the following table of profit payoffs, using sensitivity analysis at what probability would youb indifferent between decision A & B? States of Nature s2 Decision s1 20 0 16 4 0 0.40 0.80 0.50
Given the following table of profit payoffs, using sensitivity analysis at what probability would youb indifferent between decision A & B? States of Nature s2 Decision s1 20 0 16 4 0 0.40 0.80 0.50
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
Ford is going to produce a new vehicle, the Bronco, and wants to determine the amount of annual capacity it should build. Ford's goal is to maximize the profit from this vehicle over the next 5 years. The average vehicle will sell for $39,000 and incur a variable production cost of $26,000. Building one unit of annual capacity ill cost $2,000. Each unit of capacity will also cost $1,000 per year to maintain, even if capacity is unused. Demand for...
5. Regarding decision making from the results of data analyses, if our obtained probability is then we can reject the which then supports the b greater than 05, null hypothesis, alterative hypothesis and that a true difference exists. below.10, null hypothesis, alternative hypothesis and that a true difference exists below.05, alternative hypothesis, null hypothesis and that a true difference exists below.05, null hypothesis, alternative hypothesis and that a true difference exists The essence of hypothesis testing is that we are...
constraints, also written in terms of decision variables (some using both decision supplement. In addition, the Lecture notes page in this website gives you access Then you complete Task 1, you should have two decision variables, the ng constraints. We simply list all conditions that must objective function written in terms of those decision variables, and five 2. The second step is to find a solution. Task 2 tells you specifically to use Excel Solver to find this solution. The...
1. What is "risk in a financial sense. What is it that creates risk for companies? Please be specific. (3 pts.) 2. Pick one of the 'subareas' of finance and provide an of what is involved in that subarea. (3 pts.) 3. Describe the role that ethics should play in finance. How do "fiduciary relationships affect this? (3 pts.) 4. Why do companies usually go through a "life-cycle" where they start out as sole proprietorships and then eventually become corporations....
#1 What is the HIV epidemic? (give specific details from your readings) #2 The main transmission routes of HIV are: 1. unsafe sex with an HIV-infected partner 2. sharing injection paraphernalia with an HIV-infected partner 3. vertical transmission of HIV from the HIV+ mother to the newborn (before or at birth; or later, due to breastfeeding) Research the cdc.gov website and search for statistics for these 3 transmission routes. What did you find? # 3 What is meant by the...
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