12 0 2 5 16 15 Stadium 1 12 6. 8 Interstate If there is no expansion, what is the maximum number of cars that may actually travel from the stadium to the terstate per hour? Why is this number not equal to 33,000, as Dr. Lee suggested? If the cost for expanding a street were the same for each street, which street(s) would you recommend expanding crease the canacity to 33 0002 Which streets would vou recommend expanding to get the total canacity of the syst ure 55 8. 5
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- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?NetScan IT Solutions is an IT service and support organization located in a major metropolitan area. The organization consists of eight first-line supervisors, 30 field technicians/installers, 10 part time Tier 1 help desk technicians, 1 CCNE, 1 CCNA, and numerous personnel that provide organizational administrative support. NetScan provides diagnostic, installation, consultation, and numerous other services related to all aspects and domains in information technology. The organization has not been very progressive with its internal service records, service scheduling, and other service and support information as many of these records are paper-based. Procedures and processes are not formally documented by the organization and the staff is having difficulty keeping up with the daily demands of normal operations. Documentation is lost or misplaced on a fairly regular basis, putting the staff into crisis mode as they try to make things right. The Board of Directors recently hired a…Sibanye Stillwater Ltd. said it might cut more than 2,000 jobs at some gold mining operations in South Africa that are struggling to make a profit. The Johannesburg-based precious metals producer will enter into consultations with labour groups and other stakeholders on the proposed restructuring, which could affect 1,959 employees and 465 contractors at its Beatrix 4 shaft and Kloof 1 plant. The operations aren’t profitable as they are running out of commercially viable ore, and they face rising costs and lower output levels, Sibanye said in a statement. “To allow shafts and operating plants that are no longer sustainable to continue operating at a loss will threaten the remaining life of mine of the other South African gold operations,” said Richard Stewart, Sibanye’s chief regional officer for Southern Africa. Sibanye, the largest employer in South Africa’s mining sector, was hit by a workers’ strike over wages for almost three months earlier this year. The…
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- A firm that plans to expand its product line must decide whether to build a small or a large facilityto produce the new products. If it builds a small facility and demand is low, the net present valueafter deducting for building costs will be $400,000. If demand is high, the firm can either maintainthe small facility or expand it. Expansion would have a net present value of $450,000, and maintaining the small facility would have a net present value of $50,000.If a large facility is built and demand is high, the estimated net present value is $800,000. If demandturns out to be low, the net present value will be – $10,000.The probability that demand will be high is estimated to be .60, and the probability of low demandis estimated to be .40.a. Analyze using a tree diagram.A firm that plans to expand its product line must decide whether to build a small or a large facilityto produce the new products. If it builds a small facility and demand is low, the net present valueafter deducting for building costs will be $400,000. If demand is high, the firm can either maintainthe small facility or expand it. Expansion would have a net present value of $450,000, and maintaining the small facility would have a net present value of $50,000.If a large facility is built and demand is high, the estimated net present value is $800,000. If demandturns out to be low, the net present value will be – $10,000.The probability that demand will be high is estimated to be .60, and the probability of low demandis estimated to be .40. 1- Compute the EVPI 2- Determine the range over which each alternative would be best in terms of the value of P ( low demand )The Wisteria University athletic department is considering a campaign next year to raise funds for a new athletic field. To a large extent, the response to the campaign depends on how successful the soccer team is in the fall. In the past they have had winning seasons 60% of the time. If they have a winning season (G), many alumni will contribute and the campaign will raise $3 million. If they have a losing season (P), very few will contribute and they will lose $2 million. If the campaign does not take place, no cost is incurred. On September 1, prior to the start of the season, the athletics department must decide whether to conduct the campaign next year. a) Develop a decision tree formulation for this problem by identifying the alternative options, the states of nature, and the payoff matrix. b) According to the maximum expected value rule, should the campaign be conducted? c) What is the VEIP? d) A famous soccer guru, William Walsh, has offered to evaluate whether the team…
- The Wisteria University athletic department is considering a campaign next year to raise funds for a new athletic field. To a large extent, the response to the campaign depends on how successful the soccer team is in the fall. In the past they have had winning seasons 60% of the time. If they have a winning season (G), many alumni will contribute and the campaign will raise $3 million. If they have a losing season (P), very few will contribute and they will lose $2 million. If the campaign does not take place, no cost is incurred. On September 1, prior to the start of the season, the athletics department must decide whether to conduct the campaign next year. d) A famous soccer guru, William Walsh, has offered to evaluate whether the team will have a winning season. For $100,000 he will evaluate the team's spring and preseason practices. William will give his prediction on September 1 as to what type of season, G or P, the team will have. In similar situations in the past, when…The Wisteria University athletic department is considering a campaign next year to raise funds for a new athletic field. To a large extent, the response to the campaign depends on how successful the soccer team is in the fall. In the past they have had winning seasons 60% of the time. If they have a winning season (G), many alumni will contribute and the campaign will raise $3 million. If they have a losing season (P), very few will contribute and they will lose $2 million. If the campaign does not take place, no cost is incurred. On September 1, prior to the start of the season, the athletics department must decide whether to conduct the campaign next year. d) A famous soccer guru, William Walsh, has offered to evaluate whether the team will have a winning season. For $100,000 he will evaluate the team's spring and preseason practices. William will give his prediction on September 1 as to what type of season, G or P, the team will have. In similar situations in the past, when…Two home improvement stores (Great Home and Super Home) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store. and parking lot to accommodate potential growth in their customer base. Two possible actions for both the firms are increase the size of the store and parking lot' and 'do not increase the size of the store and parking lot. Payoffs are defined in terms increase in annual profits in $million. The Following table describes the payoffs for both the firms to alternative actions taken by each of them.. a) Lets say, each store is pursuing its own best interest. What will be a rational (or dominant) strategy for Super Home to follow? Explain in 3-4 sentences. What will be a rational (or dominant) strategy for Great Home to Follow? b) [What will be the annual profit growth for each store, if they both follow their dominant strategy? What is a Nash equilibrium here and why? Find out the Nash equilibrium using…