The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop:
Decision Low High
Alternative 1 $10,000 $30,000
Alternative 2 $6,000 $38,000
Alternative 3 -$2,500 $50,000
The probability of low demand is 0.350.35, whereas the probability of high demand is 0.650.65.
A) The alternative that provides Robert the greatest expected monetary value (EMV) Which alternative? The decision is $?
B) The EMV for this decision is $ (enter your answer as a whole number)?
C) The expected value of perfect information (EVPI) for Robert = $ (enter your answer as a whole number)?
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The following payoff table provides profits based on various
possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop Demand Decision Low Alternative 1 $10,000 $36,000 Alternative 2 $5,000 Alternative 3$2.000 $52.000 High $40,000 The probability of low demand ie 0.35, whoreas the probability of high demand is 0,65 a) The altermative that provides Robert the greatest expected monetary value (EMV) is Alternative 3 he EMIV for this decision is (enter your answer as a whole numbor,...
The below payoff table gives profits from several decision alternatives and two different levels of demand....
The below payoff table gives profits from several decision alternatives and two different levels of demand. Decision Alternative 1 Alternative 2 Alternative 3 Demand Low High $10,000 $36,000 $6,000 $42,000 -$2,000 $52,000 The probability of low demand is 0.35, whereas the probability of high demand is 0.65. a) The alternative that provides the greatest expected monetary value (EMV) is The EMV for this decision is $(enter your answer as a whole number). b) The expected value with perfect information (EVWPI)...
The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands: States of Nature Demand Alternatives Low Medium High Alternative A 80 120 140 Alternative B 70 90 100 Alternative C 30 60 120 Probability 0.4 0.3 0.3 What will be the expected value of perfect information (EVPI) for this situation?
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...
The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Amber Gardner's software firm: Demand Level 0.70 0.30 Low High Alternative A $12,500 $30,000 B $7,500 $41,000 C ($2,000) $50,000 *Profits in $ thousands Using Excel, create an X,Y plot the expected-value lines for the three alternatives on a graph. Label the graph completely and clearly. (5 pts) Is there any alternative that would never be appropriate in terms of maximizing expected...
The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various
possible decision alternatives and various levels of demand at
Amber Gardner's software firm:
Demand Level
0.3
0.7
Low
High
Alternative
A
$10,000
$30,000
B
$5,000
$40,000
C
($2,000)
$50,000
*Profits in $ thousands
a. Plot the expected-value lines on a graph. (Answered
below)
Alternative
Demand Level
0
1
A
$ 10,000.00
$ 30,000.00
B
$ 5,000.00
$ 40,000.00
C
$ (2,000.00)
$ 50,000.00
b. Is there any alternative that would never...
The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands: States of Nature Demand Alternatives Low Medium High Alternative A 80 120 140 Alternative B 70 90 100 Alternative C 30 60 120 Probability 0.4 0.3 0.3 What will be the expected value of perfect information (EVPI) for this situation? 2. Given the following gasoline data: Quarter Year 1 Year 2 1 95 105 2 85 95 3...
Consider the following decision table, which Joe Blackburn has developed for Vanderbilt Enterprises: Probability: Decision Alternatives...
Consider the following decision table, which Joe Blackburn has developed for Vanderbilt Enterprises: Probability: Decision Alternatives A B C D E 0.45 Low $40 $90 $65 $70 $70 States o. Nature 0.25 0.30 Medium High $100 $60 $50 $75 $60 $75 $75 $70 $75 $75 The alternative that provides Blackburn the greatest expected monetary value (EMV) is
2) A concessionaire for the local ballpark has developed a table of conditional values for the...
2) A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd). All values are in US Dollars. LargeAverage Small 3 Probability Alternative 1 9,000 12,0002,000 Aisanativ:l» t,0008,000 &000 Alternative 3 5,00012,0005,000 If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50 for an average crowd, and 0.20 for a small crowd, determine: (a) the alternative that provides the...
Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional...
Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): States of Nature (size of crowd) Alternatives Large Average Small Large Inventory $24,000 $10,000 - $3,000 Average Inventory $12,000 $15,000 $6,000 Small Inventory $9,000 $6,000 $5,000 Probabilities associated with the states of nature are 0.30 for a large crowd, 0.55 for an average crowd, and 0.15 for a small crowd....
The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop Demand Decision Low Alternative 1 $10,000 $36,000 Alternative 2 $5,000 Alternative 3$2.000 $52.000 High $40,000 The probability of low demand ie 0.35, whoreas the probability of high demand is 0,65 a) The altermative that provides Robert the greatest expected monetary value (EMV) is Alternative 3 he EMIV for this decision is (enter your answer as a whole numbor,...
The below payoff table gives profits from several decision alternatives and two different levels of demand. Decision Alternative 1 Alternative 2 Alternative 3 Demand Low High $10,000 $36,000 $6,000 $42,000 -$2,000 $52,000 The probability of low demand is 0.35, whereas the probability of high demand is 0.65. a) The alternative that provides the greatest expected monetary value (EMV) is The EMV for this decision is $(enter your answer as a whole number). b) The expected value with perfect information (EVWPI)...
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...
The following payoff table provides profits based on various
possible decision alternatives and various levels of demand at
Amber Gardner's software firm:
Demand Level
0.3
0.7
Low
High
Alternative
A
$10,000
$30,000
B
$5,000
$40,000
C
($2,000)
$50,000
*Profits in $ thousands
a. Plot the expected-value lines on a graph. (Answered
below)
Alternative
Demand Level
0
1
A
$ 10,000.00
$ 30,000.00
B
$ 5,000.00
$ 40,000.00
C
$ (2,000.00)
$ 50,000.00
b. Is there any alternative that would never...
Consider the following decision table, which Joe Blackburn has developed for Vanderbilt Enterprises: Probability: Decision Alternatives A B C D E 0.45 Low $40 $90 $65 $70 $70 States o. Nature 0.25 0.30 Medium High $100 $60 $50 $75 $60 $75 $75 $70 $75 $75 The alternative that provides Blackburn the greatest expected monetary value (EMV) is
2) A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd). All values are in US Dollars. LargeAverage Small 3 Probability Alternative 1 9,000 12,0002,000 Aisanativ:l» t,0008,000 &000 Alternative 3 5,00012,0005,000 If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50 for an average crowd, and 0.20 for a small crowd, determine: (a) the alternative that provides the...
Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): States of Nature (size of crowd) Alternatives Large Average Small Large Inventory $24,000 $10,000 - $3,000 Average Inventory $12,000 $15,000 $6,000 Small Inventory $9,000 $6,000 $5,000 Probabilities associated with the states of nature are 0.30 for a large crowd, 0.55 for an average crowd, and 0.15 for a small crowd....
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