a. Draw a decision tree
Q: On a certain route, an airline carries 8000 passengers per month, each paying $50. A market survey…
A: (8000 - 100x) (50+x) = Revenue
Q: Swell Productions is sponsoring an outdoor conclave for owners of collectible and classic Fords. The…
A:
Q: The owners of Sweet-Tooth Bakery have determined thatthey need to expand their facility in order to…
A: Solution - Decision Tree - Each internal node represents a test on an attribute (for example,…
Q: Offwego Airlines has a daily flight from Chicago to Las Vegas. On average, 18 ticket holderscancel…
A:
Q: d. What is the probability that three or more people are at the coffee urn? (Do not round…
A: THE ANSWER IS AS BELOW:
Q: Three doctors have banded together to form a jointpractice: the Port Charles Trio. The overhead for…
A: (i). Characteristic function v: v(∅) = 0 v({1}) = (155 − 40) − 40 = 75, v({2}) = 85, v({3}) = 62;…
Q: Over the years, BMW has earned an enviable reputation for quality-built cars. To ensure they…
A: S = Number of Super Luxury units sold L = Number of Luxury units sold A = Number of Affordable…
Q: Benny is the manager of an office-support business that supplies copying, binding, and other…
A: Given Information:
Q: Draw a decision tree and determine the payoff for each decision and event node. Which alternative…
A: Decision tree is graphical representation of all available options of decision making with…
Q: Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings…
A: Given - Initial investment projection is $5,700,000 in year 0, $1,900.000 in year 7, $137.480 in…
Q: The staff training centre at a large regional hospital provides training sessions in CPR to all…
A: Given Information: The design capacity of the training system = 2100 employees per year Effective…
Q: obs arrive at Loaf Machine Shop. Assume the arrival rate is five jobs per hour. Service times (in…
A: Given:For design A:Mean service time= 6S.d=3For design B:Mean service time= 6.25S.d=0.6
Q: Janelle Heinke, the owner of Ha’Peppas!, is consider-ing a new oven in which to bake the firm’s…
A: GIven Information: Oven Type A - Capacity = 20 pizzas in an hour Fixed Cost = $ 20,000 Variable…
Q: If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the…
A:
Q: If Julia clears at least $1,000 in profit for each game after paying all her expenses, she believes…
A: Linear programming is regarded as a method of optimization to maximise or minimise the objective…
Q: A trading company has 2 outlets. It has data from the last 12 months of sales of its flagship…
A: Find the Given details below: Given details: Observed Demand Demand Pronosticated Month T1…
Q: Dave Escalona, a DLSL Computer Engineering graduate, is considering the possibility of opening a…
A: Decision making is a process of selecting the best alternatives from all possible decisions based on…
Q: 3-29 Mick Karra is the manager of MCZ Drilling Prod- ucts, which produces a variety of specialty…
A: Given data, Demand level Low demand = 20%Medium Demand = 30% High Demand = 50%…
Q: Hudson Corporation is considering three options for managing its data processing operation:…
A: THE ANSWER IS AS BELOW:
Q: The XYZ manufacturing company is considering replacing one of its metal cutting machine which can be…
A: Below is the table we used for the company must use the defender for the next 4 years.
Q: Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for…
A: Below is the solution:-
Q: . Martha's utility function is U(x, y) = min (x + 2y, 2x + y). George's utility function is U(x, y)…
A: The Correct option is : B Here's Why:
Q: A businessman must decide whether to open a new mini grocery branch or simply extend the number of…
A: Hello thank you for the question. As per guidelines, we would provide only one answer at a time.…
Q: Suppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building…
A: Cost is the sum of money used by the manufacturer to manufacture and sell the commodities in the…
Q: A company evaluate its hiring cost is RM150 per worker and layoff cost is RM200 per worker.…
A: Given data is Hiring cost = RM150 Layoff cost = RM200 Current number of workers = 20 Forecasted…
Q: An airline company has been contracting a maintenance company to do overhauls for its planes at a…
A: Let the number of planes be x per quarter Current cost per quarter = 51275 per plane Cost after…
Q: Suppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building…
A: Assume, CA be the cost of 600-MW fossil-fuel plant. CB be the cost of 200-MW fossil-fuel plant.…
Q: As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a…
A: Taking the number of rooms occupied in a month a 'X' . Given: Fixed Cost = $ 6,000 Variable Cost =…
Q: Who's started Nanina's Gourmet Sauce?
A: Professor Buzza gave his class the assignment of starting a pasta sauce company.
Q: Even though independent gasoline stations have been having a difficult time, lan Langella been…
A: Find the given details below: Given details: Size for the first station Good Market Fair Market…
Q: A fixed cost of $50 thousand was incurred in setting up an operation. At time t months thereafter,…
A: Given - Rate of Income = (20 - 0.3t) Rate of Expenses = (10 - 0.1t) Fixed Cost = $50
Q: A manager is trying to decide whether to build a small,medium, or large facility. Demand can be low,…
A: Find the Calculations below: Formulas:
Q: A rock concert producer has scheduled an outdoor concert. The producer estimates the attendance will…
A: Formula to be used to calculate the profit = Profit = Revenue - Cost
Q: Problems 2 Helen Murvis, hospital administrator for Portland General Hospital, is trying to…
A: A decision table indicates the decision-making reason & the corresponding activities taken in a…
Q: The mayor of Cambridge, Colorado, wanting to be environ-mentally progressive, decides to implement a…
A: a) The schedule with a minimum number of recycling collectors are as follows: Thus, a total of 12…
Q: Jobs arrive at Loaf Machine Shop. Assume the arrival rate is five jobs per hour. Service times (in…
A: Given: For design A:mean service time = 6S.D = 3For design Bmean service time = 6.25S.D = 0.6
Q: The College Avenue Sub Shop is located in a small college town. Virtually all of its phone delivery…
A:
Q: Recently, Walmart offered a wireless data contract based on bandwidth used, with a minimummonthly…
A: Below is the working on total cost for a user to use 9 GB:
Q: The frequency of breakdown of a machine that issues lottery tickets is given in the following…
A: Any production system using machines will have its share of breakdowns. Every breakdown means a cost…
Q: Mt. Kinley is a strategy consulting firm that divides its consultants into three classes:…
A: Given that: Stab le size of firm lasts= 20 years Expected associates = 200 Expected managers = 60…
Q: Jane Woodhurst is considering whether to buy one or two machines for a certain stage of the assembly…
A: Expected payoff = 325,000 Purchase 1 machine now and purchase the 2nd machine if demand is high.
Q: Jawad has calculated the possible profits from three different scenarios for the expansion of his…
A: Advertising is basically a paid form of Publicity. A company pays to the advertising media for doing…
Q: The State U doctoral program in business admits anaverage of 25 doctoral students each year. If a…
A: Let L denote the doctor students one can expect to find at State U. Let λ be the number of doctoral…
Q: Bob Carlton’s golf camp estimates the following staff requirements for its services over the next 2…
A: Chase Strategy The chase strategy relates to the idea that you are following the market's demand.…
Q: The DellaVecchia Garden Center purchases and sells Christmas trees during the holiday season. It…
A: Payoffs and Payoff Table (a & b)Purchase price = $10 and sales price = $20, therefore profit =…
Q: Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the…
A: Answer: By using the following formula variable cost per hour can be calculated. Variable cost per…
Q: In considering a capacity expansion, we have two alternatives. The first alternative is expected to…
A: The determination of the favourable alternative and expected value of the capacity expansion is…
Q: The cost per day of running a hospital is 200,000 10.5x2 dollars, where x is the number of patients…
A: cost equation is: C(x) = 200,000 + 0.5 x2 For x = 300 we get, C(300) = 200000 + 0.5 (3002) C(300) =…
A businessman must decide whether to open a new mini grocery branch or simply extend the number of hours of its operation on its existing branch with a payoff of P 150,000. According to his friend, demand at the new location can either be low or high, which the probabilities are estimated to be 35% and 65%, respectively. If a new branch is opened and demand proves to be low, there is no need to operate on a 24-hr basis but instead, they will stick to 12-hrs operation with a payoff of P 100,000 or enhance marketing strategy through advertising. Projected response to advertising may either be favorable or not favorable, with estimated probabilities of 40% and 60%, respectively. If demand is favorable, the payoff grows to P 310,000 and if response is unfavorable, the payoff is P 120,000. The cost of advertising is P45,000.
Required: a. Draw a decision tree
b.Determine the expected value for each decision and event nodes.
Step by step
Solved in 2 steps with 1 images
- A businessman must decide whether to open a new mini grocery branch or simply extend the number of hours of its operation on its existing branch with a payoff of P 150,000. According to his friend, demand at the new location can either be low or high, which the probabilities are estimated to be 35% and 65%, respectively. If a new branch is opened and demand proves to be low, there is no need to operate on a 24-hr basis but instead, they will stick to 12-hrs operation with a payoff of P 100,000 or enhance marketing strategy through advertising. Projected response to advertising may either be favorable or not favorable, with estimated probabilities of 40% and 60%, respectively. If demand is favorable, the payoff grows to P 310,000 and if response is unfavorable, the payoff is P 120,000. The cost of advertising is P45,000. Required: a. Draw a decision tree b.Determine the expected value for each decision and event nodes. Which alternative is the best…usinessman must decide whether to open a new mini grocery branch or simply extend the number of hours of its operation on its existing branch with a payoff of P 150,000. According to his friend, demand at the new location can either be low or high, which the probabilities are estimated to be 35% and 65%, respectively. If a new branch is opened and demand proves to be low, there is no need to operate on a 24-hr basis but instead, they will stick to 12-hrs operation with a payoff of P 100,000 or enhance marketing strategy through advertising. Projected response to advertising may either be favorable or not favorable, with estimated probabilities of 40% and 60%, respectively. If demand is favorable, the payoff grows to P 310,000 and if response is unfavorable, the payoff is P 120,000. The cost of advertising is P45,000. Required: a. Draw a decision treeb. Determine the expected value for each decision and event nodes.c. Which alternative is the best for the businessman?A fixed cost of $50 thousand was incurred in setting up an operation. At time t months thereafter, the operation yields income at the rate of (20 - 0.3t) and incurs expense at the rate of (10 - 0.1t), where both rates are in thousands of dollars per month. What is the optimal time to terminate the operation? What will total profit be at the optimal time of termination?
- - Mom-and-Pop’s Grocery Store has a small adjacent parking lot with three parkingspaces reserved for the store’s customers. During store hours, cars enter the lot and useone of the spaces at a mean rate of 2 per hour. For n = 0, 1, 2, 3, the probability Pn that exactly n spaces currently are being used is P0 = 0.1, P1 = 0.2, P2 = 0.4, P3 = 0.3. - Midtown Bank always has two tellers on duty. The Customers arrive at checkouts at an average rate of 40 per hour. A cashier requires an average of 2 minutes to serve a customer. When both cashiers are busy, arriving customer joins a queue and wait to be served. From experience it is known that customers They wait in line for an average of 1 minute before going to the checkout. a) Describe why this is a waiting line system Mention the queuing model that can be implemented for the analysis (notation of Kendall) and why that model was chosenSuppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building a 600-MW fossil-fuel plant for the assembly of its new long-distance aircraft. It is known that a 200-MW plant cost $100 million 20 years ago when the approximate cost index was 400, and that cost index is now 1,200. The cost-capacity factor for a fossil-fuel power plant is 0.79.A recruiter for a job placement agency is considering whether to pay $50,000 per year to lease a new recruiting facility in a prime location in Washington D. C. He estimates it will cost $50 per recruit to process the paperwork at this new location. He receives a $75 commission for each new recruit he processes. Part A - If the office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually, respectively, and 6,000 recruits will be processed per year, what will be the utilization of the office space?Part B - If his office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually, respectively, and he plans to be 90% efficient in his use of this space, how many recruits does he plan to process per year?
- The college campus, it turns out, can be an ideal incubator for hatching small businesses. Nanina’s Gourmet Sauce, a pasta sauce company based in Belleville, N.J., was started, for instance, in 2005 by students taking an entrepreneurship course at Monmouth University in West Long Branch, N.J. Nanina’s products are now sold in nearly 400 supermarkets and gourmet shops in New Jersey and Manhattan, and the company’s director of operations is 23-year-old Nick Massari, a student in that class. The course at Monmouth is one of thousands of similar offerings on campuses across the United States. Undergraduate courses in how to start and run a small business are becoming as ubiquitous as Economics 101. Gone is the conventional wisdom that running a small business cannot be learned by sitting in a classroom. According to the Kauffman Foundation in Kansas City, Mo., more than 2,000 colleges and universities now offer at least a class and often an entire course of study in entrepreneurship. That…Alice, Wonder, and Land are freshmen under the marketing management program. Every month, they purchase a piece of Panda ballpen. The price of the ball pen is Php9.50.According to a recent survey, 45% of the marketing freshmen have the samepurchasing behavior as Alice, Wonder, and Land. Another 30% also purchase Panda ballpens regularly at the same price; however, they purchase once every 2 weeks. There are approximately 280 freshmen under the marketing management program. Assuming that the behavior is consistent throughout their 4-year stay in the program, what is the approximate projected revenue that can be generated from the marketing freshmen for the entire duration of their stay in the program?A refiner in city Q serves three customers near city Wand maintains consignment inventory (owned by the refiner) at each location. Currently, the refiner uses TL (truckload) transportation to deliver separately to each customer. Each truck costs $650 plus $300 per stop. The refiner is considering aggregating deliveries to city Won a singletruck. The demand ofthe first customer is 96 tons a year, the demand of the second customer is 24 tons per year, and the demand of the third customer is 9.6 tons per year. Product cost is $7,700 per ton, and it uses a holding cost of 15%. Truck capacity is 15tons. a.What is the annual transportation and holding cost if the refiner ships a full truckload each time a customer is running out of stock? How many days of inventory is carried at each customer under this policy? b.What is the optimal delivery policy to each customer if the refiner ships separately to each of them? What is the annual transportation and holding cost? How many days of inventory…
- On a certain route, an airline carries 8000 passengers per month, each paying $50. A market survey indicates that for each $1 increase in the ticket price, the airline will lose 100 passengers. Find the ticket price that will maximize the airline’s monthly revenue for the route. What is the maximum monthly revenue?Josh Randall, a sales representative for WAI, has convincedhis customer (order #2 in Problem 9) to reschedule. Order #2 hasagreed to accept delivery of 25 units in week 2 as long as WAIcan also guarantee delivery of an additional 25 units in week 5.If WAI cannot meet both delivery requirements, the customerhas threatened to withdraw its entire order. You have alreadypromised orders 1, 3, and 4. Can you assure Josh that WAI willdeliver on time? Show your calculations.Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the comingyear using the high-low method. The cost driver is number of labor hours. Wallace determines thatthe high and low costs are $25,830 and $18,414, respectively, and the values for the cost driver are3,495 and 1,958 hours, respectively. What is the variable cost per hour?