Q 1. (8 marks) [CLO 1, 2] Ali wants to invest in stocks. He has three...
INSTRUCTIONS Answer all questions on the answer sheet provided You have 2 hours to complete this test *Use of calculators is allowed Standard Normal Distribution table will be provided Q 1. (8 marks) [CLO 1, 2] Ali wants to invest in stocks. He has three alternatives along with different probabilities. The table below shows conditional values for the various alternatives (stocking decision) and states of nature (size of crowd). All values are in US Dollars. Large Average Small Alternative 1...
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...
uestion 3 10 points Save Answ. 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). 9 Probability Alternative 1 Alternative 2 Alternative 3 Large 3 .000 22,000 1 5,000 Average 15 12,000 5,000 12,000 Small 12 2,000 6,000 5,000 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...
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): Alternatives Large Inventory Average Inventory Small Inventory States of Nature (size of crowd) Large Average Small $24,000 $10,000 - $3,000 $12,000 $15,000 $6,000 $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....
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....
Problem 1B: You want to invest money in real estate. The following table summarizes the payoffs of the investment in good or bad economic situations. States of nature Actions Good Poor Apartment building $ 50,000 $ 30,000 Office building $ 100,000 - $40,000 Warehouse $ 30,000 $ 10,000 You estimate that the probabilities of having good or bad economic situations are 70% and 30%, respectively. Find the optimal action based on the expected monetary value (EMV) criterion using your prior...
Problem 1B: You want to invest money in real estate. The following table summarizes the payoffs of the investment in good or bad economic situations. States of nature Actions Good Poor Apartment building $ 50,000 $ 30,000 Office building $ 100,000 - $40,000 Warehouse $ 30,000 $ 10,000 You estimate that the probabilities of having good or bad economic situations are 70% and 30%, respectively. Find the optimal action based on the expected monetary value (EMV) criterion using your prior...
Question 2 A decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table. States of Nature Decision alternative S_1 S_2 S_3 S_4 d_1 14 9 10 5 d_2 11 10 8 7 d_3 9 10 10 11 d_4 8 10 11 13 (a) State and use the average payoff strategy to choose the best decision. (3 Marks) (b) State and use the aggresive strategy to choose the best decision. (3 Marks) (c)...
Ashley Miller has three major routes to commute to work: take RiverView Street the entire way, take several back streets, or use the expressway. The traffic patterns are pretty complex. Under good conditions, RiverView Street is the fastest route; however, when it is congested, one of the other routes is usually preferable. Over the past two months, Ashley has tried each route several times under different traffic conditions. Her travel time to work (in minutes) is summarized in the following...
Quantitative Methods (STAT-201) Q3 . A manager is deciding whether or not to build a small facility. Demand is uncertain and can be either at a high or low level. If the manager chooses a small facility and demand is low, the payoff is $30. If the manager chooses a small facility and demand is high, the payoff is $10. On the other hand, if the manager chooses a large facility and demand is low, the payoff is -$20, but...