Order ID | 53563633773 |
Type | Essay |
Writer Level | Masters |
Style | APA |
Sources/References | 4 |
Perfect Number of Pages to Order | 5-10 Pages |
Question 1. A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000’s) based on the different scenarios faced by the manager.
Buy 2 machine
Buy 3 machine
Using the information above, which alternative should be chosen based on the Maximax criterion?
Question 2. A plant manager is considering buying additional stamping machines to accommodate increasing demand. The alternatives are to buy 1 machine, 2 machines, or 3 machines. The profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. The payoff table below illustrates the profits realized (in $000’s) based on the different scenarios faced by the manager.
Refer to the information above. Assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected.
What is the expected value under certainty?
Question 3. “The probability of event B, given that event A has occurred” is known as a __________ probability.
Question 4. Assume that you have an urn containing 10 balls of the following description:
If you draw a numbered ball (N), the probability that this ball is white (W) is 0.60.
Question 5. What is the formula for the break-even point of a simple profit model?