High Places Studio a Solution

3.) I said the model should taste 10 cups of coffee. Fisher said the tea lady should taste 8 cups of tea. Fisher's answer to this question was that the "tea lady" should taste 8 cups of coffee because there are 70 possible outcomes of the order in which they are presented for her tasting. Fisher said "There are 70 ways of choosing a group of 4 objects out of 8… namely that if we were to choose the 4 objects in succession we should have successively 8,7,6,5 objects to choose from, and could make our succession of choices 8 times 7 times 6 times 5 or in 1680 ways." My answere was not exactly the same as fishers but it was quite similar. He chose 8 as the amount of cups served, but I chose 10. We both did choose a reasonable amount of cups that should be served and we both have a fair amount of possible outcomes in which the coffee/ tea could be

Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.

There would still be a net loss in 2006 due to the increase of break-even point, which increased from $7,505 to $8,640.

a. Joe has signed a contract to sell gadgets to the city. The contract provides that sales of gadgets are dependent upon a test sample of gadgets operating successfully. In December, Joe delivers $12,000 worth of gadgets to the city that will be tested in March. Joe purchased the gadgets especially for this contract and paid $8,500

E[Rp ] = (1 − wTb )RF,b + wTb E[RTb ] = (1 − 1.1735) × 0.02 + 1.1735 × 0.04386 = 4.80%.

1. According to the case, it shows that management of M determined that a loss would be “probable” and the estimate range would be $15 million to $20 million. However, they determined $17 million would be the “most likely” amount of loss.

It seems like an awfully difficult task to calculate lost profits to Main Line Pictures in this case. Kim Basinger, a well-known and very reputable actress, walked away from a movie deal causing Main Line Pictures to lose money. The amount of Main Line’s loss can never be determined with pinpoint accuracy, and Main Line would not have made the profit that they indicate they would have. However, is the plaintiff correct and are the claims the plaintiff is bringing forward reasonable?

For the Motorking Corporation, the DSI tree estimates a profit of $1,885,137.50 in a strong economy and after subtracting the DSI fee of $20,000 leaves the corporation with $1,865,137.50 which is greater than $1,577,291 (This is Motorking’s Expected Value for Perfect Information). This proves that the Motorking should hire DSI to conduct a market survey.

A. The simulated function given in the Excel spreadsheet “Hamptonshire Express: Problem_#1” allows the user to find the optimal quantity of newspapers to be stocked at the newly formed Hamptonshire Express Daily Newspaper. Anna Sheen estimated the daily demand of newspapers to be on a normal standard distribution; stating that daily demand will have a mean of 500 newspapers per day with a standard deviation of 100 newspapers per day. Using the function provided, the optimal stocking quantity, which maximizes expected profit, is determined to be approximately 584 newspapers. If 584 newspapers were to be ordered, Hamptonshire Express will net an

Values of the Components of the Optimality Measure =(s|t) for each candidate split, for the Split PL PR P(L=1|tL) P(L=2|tL) P(L=3|tL) P(L=4|tL) P(L=1|tR) P(L=2|tR) P(L=3|tR) P(L=4|tR) 2PLPR ∅(s|t)

* Since LTV in option 3 is lower than industry average LTV, therefore option 3 should not be considered

Profit= 42360,739 + 1703,305 MTenure -4,57 MTenureSquared+ 3780,703 CTenure - 60,526 CTenureSquared + 3,997 Pop - 26561,276 Comp + 18091,05 Visibility + 36639,014 PedCount+ 58429,513

5. P = $40({1 – [1/(1 + .03)]26 } / .03) + $1,000[1 / (1 + .03)26]

Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.

The test provides us with expected value of information which helps us to evaluate our decision with cases where the information is not clear. Furthermore, the uncertainty regarding the decision, despite coming at the cost of $50,000, is resolved before a particular choice of selecting the standard or robust choice is made. However, once the decision is made, the market will take its course of action. It is simply the fact that ISSI has a fair idea of the possible outcome. If ISSI does not carry out the test, it will only have the option to either install the standard system or the robust system. The dilemma in this decision is that either ISSI will install the standard system and earn a profit of $300,000 which has a probability of 90% or a loss of $200,000 if the system does not work which has a probability of 10%. On the other hand if the robust system is installed ISSI will