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...
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 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?
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 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 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 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
1.Given is a decision payoff table. Future Demand Alternatives Low Moderate High Small Facility 53 31 22 Medium Facility 29 42 32 Large Facility -5 30 53 a) The best decision under uncertainty using MAXIMAX is to select facility b) The best decision under uncertainty using MAXIMIN is to select facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select facility d) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30,...
The following is a payoff table giving profits for various situations: Alternatives A B C Alternative 1 140 148 150 Alternative 2 221 123 125 Alternative 3 123 140 212 Question: What decision would a pessimist make?