answer all question 3. The Miramar Company is going to introduce one of three new products: a widget,a hummer, or a nimnot. The market conditions (favorable, stable, or unfavorable)will determine the profit or loss the company realizes, as shown in the followingpayoff table:Market ConditionsFavorableStableUnfavorableProduct.2.7.1Widget$120,000$70,000$-30,000Hummer60,00040,00020,000Nimnot35,00030,00030,000a. Compute the expected value for each decision and select the best one.b. Develop the opportunity loss table and compute the expected opportunity loss foreach product.c. Determine how much the firm would be willing to pay to a market research firm togain better information about future market conditions.d. The Miramar Company is considering contracting with a market research firm to do asurvey to determine future market conditions. The results of the survey will indicateeither positive or negative market conditions. There is a 0.60 probability of a positivereport, given favorable conditions; a 0.30 probability of a positive report, given stableconditions; and a 0.10 probability of a positive report, given unfavorable conditions.There is a 0.90 probability of a negative report, given unfavorable conditions; a 0.70probability, given stable conditions; and a 0.40 probability, given favorableconditions. Using decision tree analysis and posterior probability tables, determinethe decision strategy the company should follow, the expected value of the strategy,and the maximum amount the company should pay the market research firm for thesurvey results.

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Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 28EQ

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Two sectors of the U.S. economy are (1) audio, video, and communication equipment and (2) electronic components and accessories. Suppose in 1998, the input-output table involving these two sectors was as follows (all figures are in millions of dollars). To Equipment Components From 6,200 600 Components 23,000 32,000 Total Output 90,000 140,000 Determine the production levels (in dollars) necessary in these two sectors to meet an external demand for $78,000 million of communication equipment and $92,000 million of electronic components. Round answers to two significant digits.
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