and 14. A beverage stand can sell either soft drinks or coffee on any given day. If the stand sells soft drinks and the weather is hot, it will make P2,500; if the weather is cold, the profit will be P1,000. If the stand sells coffee and the weather is hot, it will make P1,900; If the weather is cold, the profit will be P2,000. The probability of cold weather on a given day at this time is 60 percent. a. P1,360. The expected payoff if the vendor has perfect information is b. PI,960. C. P2,200. d. P3,900. 15. Through the use of a decision models, managers thoroughly analyze many alternatives and decide on the best alternative for the company. Often the actual results achieved from a particular decision are not what was expected when the decision was made. In addition, an alternative that was not selected would have actually been the best decision for the company. The appropriate technique to analyze the alternatives by using expected inputs and altering them before a decision is made is a. Expected value analysis b. Linear programming c. PERT d. Sensitivity analysis

and 14. A beverage stand can sell either soft drinks or coffee on any given day. If the stand sells soft drinks and the weather is hot, it will make P2,500; if the weather is cold, the profit will be P1,000. If the stand sells coffee and the weather is hot, it will make P1,900; If the weather is cold, the profit will be P2,000. The probability of cold weather on a given day at this time is 60 percent. a. P1,360. The expected payoff if the vendor has perfect information is b. PI,960. C. P2,200. d. P3,900. 15. Through the use of a decision models, managers thoroughly analyze many alternatives and decide on the best alternative for the company. Often the actual results achieved from a particular decision are not what was expected when the decision was made. In addition, an alternative that was not selected would have actually been the best decision for the company. The appropriate technique to analyze the alternatives by using expected inputs and altering them before a decision is made is a. Expected value analysis b. Linear programming c. PERT d. Sensitivity analysis

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 1fM

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