ZuoTi.Pro
Question

For the following decision table, the highest value for the equally likely criterion is

For the following decision table, the highest value for the equally likely criterion is _______ ;this occurs with alternative _______ .


States of Nature
Alternativess_(1)s_(2)
Option 1$10,000$30,000
Option 2$5,000$45,000
Option 3$-4,000$60,000


A. $60,000; Option 3 

B. $28,000, Option 3 

C. $25,000: Option 2 

D. $20,000 Option 1 

E. $32,000: Option 3

business   Operations-Management   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

Equally likely criterion views each state as equal and weighs them equally. Here we have two states so we assign (0.5) weight to each and add both the states. Then choose the state with maximum value.

Option 1 = 10000(0.5) + 30000(0.5) =5000+15000 = $20,000

Option 2 = 5000(0.5) + 45000(0.5) =2500+22500 = $25,000

Option 3 = - 4000(0.5) + 60000(0.5) = -2000 + 30000 = $28,000

Hence, the highest value for equally likely is $28,000 for option 3.

The correct option is B.

Do give a positive rating if you think this answer helped

2 0
Add a comment
Know the answer?
Add Answer to:
For the following decision table, the highest value for the equally likely criterion is
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • 1. The highest value for the equally likely criterions is ________; this occurs with alternative ______....

    1. The highest value for the equally likely criterions is ________; this occurs with alternative ______. (1.5 pts)                                 States of Nature                                                                                                                                                  Alternatives Option 1 S1 $10,000 S2 $30,000 Option 2 $5,000 $45,000 Option 3 $-4,000 $60,000                                   States of Nature Alternatives S1 S2 p 0.6 0.4 Option 1 200 300 Option 2 50 350       2. What is the EMV for Option 1 in the following decision table? 3. What is the EMV for Option...

  • What is the EMV for Option 1 in the following decision table? States of Nature Alternatives...

    What is the EMV for Option 1 in the following decision table? States of Nature Alternatives S1 S2 p 0.4 0.6 Option 1 10,000 30,000 Option 2 5,000 45,000 Option 3 -4,000 60,000 a. 10,000 b. 30,000 c. 20,000 d. 18,000 e. 22,000

  • What is the EMV for Option 1 in the following decision table?   States of Nature...

    What is the EMV for Option 1 in the following decision table?   States of Nature   Alternatives S1 S2 P .3 .7 Option 1 15,000 20,000 Option 2 10,000 30,000   A) 18,500 B) 17,000 C) 20,000 D) 17,500 E) 15,000

  • 1) What is a tabular presentation that shows the outcome for each decision alternative under the...

    1) What is a tabular presentation that shows the outcome for each decision alternative under the various possible states of nature called A) isoquant table B) payback period matrix C) payoff table D) feasible region E) decision tree   2) Doing nothing would yield how much profit if favorable market conditions prevail according to the following profit decision table? Alternative Do Nothing Favorable marketUnfavorable Market S20,000 $10,000 A) S5,000 B) $20,000 C)-$10,000 D) SO E) $10,000   3) The expected...

  • 4. Which Alternative a decision-maker will choose if he/she uses the maximax criterion on the problem...

    4. Which Alternative a decision-maker will choose if he/she uses the maximax criterion on the problem below? Which Alternative a decision-maker will choose if he/she uses the maximin criterion on the problem below? Which Alternative a decision-maker will choose if he/she uses the equally likely criterion on the problem below? Please show the process of your answer.   States of Nature   1 2 3 Alternative A 50 55 60 Alternative B 30 50 80 Alternative C 70 80 70...

  • Select the answers for questions 1-11, from the following list and write it on the answer...

    Select the answers for questions 1-11, from the following list and write it on the answer sheet; A) State of nature B) Decision C) Alternatives D) Decision table E) Maximin F) Equally likely G) Decision tree H) Node I) Risk J) Favorable market K) Expected monetary value (EMV) L) probability M) Expected value of perfect information (EVPI) N) Pruned O) Decision table P) Maximax 1) A(n) is an occurrence or situation over which the decision maker has little or no...

  • engineering economy QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A...

    engineering economy QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A B C E Capital investment $60,000 $90,000 $40,000 $30,000 $70,000 Annual expenses $30,000 $40,000 $25,000 $15,000 $35,000 Annual revenues $50,000 $52,000 $38,000 $28,000 $45,000 MV at EOY 10 $15,000 $15,000 $10,000 $10,000 $15,000 IRR 31.5 % 7.4 % 30.8 % 42.5 % 9.2 % The life span of all alternatives is 10 years.. Using a MARR of 15 % per year, what is the...

  • A decision-maker using the maximax criterion on the problem below would choose Alternative ________ because the...

    A decision-maker using the maximax criterion on the problem below would choose Alternative ________ because the criterion value is ___________.   States of nature   1 2 3 Alternative A 50 55 60 Alternative B 30 50 80 Alternative C 70 80 70 Alternative D -100 -10 140             a.         A; 60               b. B; 80          c. C; 70           d. D; -100     e. D; 140

  • Selling Price = $28.00 Variable 2,000 6,000 12 Fixed Cost $20,000 20,000 20,000 30,000 30,000 30,000...

    Selling Price = $28.00 Variable 2,000 6,000 12 Fixed Cost $20,000 20,000 20,000 30,000 30,000 30,000 40,000 40,000 40,000 $ 14,000 12,000 10,000 4,000 2,000 Sales Volume 3,000 4,000 5,000 Profitability $ 31,000 $ 48,000 $ 65,000 28,000 44,000 60,000 25,000 40,000 55,000 21,000 38,000 55,000 18,000 34,000 50,000 15,000 30,000 45,000 11,000 28,000 45,000 8,000 24,000 40,000 5,000 20,000 35,000 $ 82,000 76,000 70,000 72,000 66,000 60,000 62,000 56,000 50,000 (6,000) (8,000) (10,000) Required a. Determine the sales volume,...

  • 3.2) The following payoff table provides profits based on various possible decision alternatives and various levels...

    3.2) The following payoff table provides profits based on various possible decision alternatives and various levels of demand. States of Nature Demand Alternatives Alternative 1 Alternative 2 Alternative 3 Low Medium High 75 90 50 120 90 70 140 90 120 The probability of a low demand is 0.4, while the probability of a medium demand is 0.4 and high demand is 0.2 (a) What decision would an optimist make? (b) What decision would a pessimist make? (c) What is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT