Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programmingdecisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand forhome improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or developsubcontracts with other home improvement contractors. Build-Rite has developed the following payoff table:HireAlternativeDemand for Home ImprovementsLow($63,000)$59,000$70,000SubcontractDo nothingWhich alternative is best, according to each of the following decision criteria?a. The best decision according to maximin criterion is alternativeinteger.)HiroModerate$188,000$234,000$125,000SubcontractDo nothingHigh$468,000$559,000$404,000and the payoff for this decision is 5 (Enter your response as an

Answered: Build-Rite Construction has received…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table: The best decision according to laplace criterion is alternative to what? and the weighted payoff for this decision is what?
Should a GC issue a purchase order or a subcontract agreement for each of the following different concrete scopes: Group of answer choices -Form purchase = -Form rental = -Rebar supply = -Rebar installation = -Concrete pump = -Concrete purchase = -Slab finishing = -Tilt-up crane = answer choices include : -Subcontract, -Purchase Order -Purchase order without Operator/ Subcontract with Operator -Either, subcontract agreement is better due to insurance
A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on the approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities:Cost of land: $2 millionProbability of rezoning: .60If the land is rezoned, there will be additional costs for new roads, lighting, and so on, of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,500 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70 percent chance that she can sell the shopping center to a large department store chain for $4 million over her construction cost, which excludes the land; and there is a 30 percent chance that she can sell it to an…
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Orpheum Productions in Nevada is considering three mutually exclusive alternatives for lighting enhancements to one of its recording studios. Each enhancement will increase revenues by attracting directors who prefer this lighting style. The cash flow details, in thousands of dollars, for these enhancements are shown in the chart below. MARR is 10%/year. Based on a future worth analysis, which alternative (if any) should be implemented?
South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers:  South Hampton is planning to award scholarships to 200 students, which will cover their fees.  The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year.  The average academic staff salary is $120,000 per annum including on-costs.  South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff teaches the equivalent…
A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of land: $3 million. Probability of rezoning: 0.50. If the land is rezoned, there will be additional costs for new roads, lighting, and so on, of $1 million. If the land is rezoned, the contractor must decide whether to build a shopping center or 1,400 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 50 percent chance that she can sell the shopping center to a large department store chain for $6 million over her construction cost, which excludes the land; and there is a 50 percent chance that she can sell it…
Dohini Manufacturing company had following 12 months of data on purchasing cost and number of purchase orders. Required: 1. Determine the high point and low point. 2. Calculate the variable rate for purchasing cost based on the number of purchase orders. (Round to nearest cent) 3. Calculate the fixed monthly cost of purchasing.(Round to nearest dollar). 4. Write the cost formula for the purchasing activity showing the fixed cost and the variable rate. 5. If Dohini manufacturing company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for the that month?(Round to nearest dollar) 6. What if Dohini manufacturing wants to estimate purchasing cost for the coming year and expects 5340 purchase orders? What will estimated total purchasing cost be? What is the total fixed purchasing cost? Why doesn't equal the fixed cost calculated in Requirement 3?(Round to nearest dollar)
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The proposed Ghana Airways Airline project is being procured through a Public-Private Partnership (PPP). In the PPP procurement process, two companies (the SPVs-special purpose vehicles), ‘A’ and ‘B’ with each having 0.5% chances of selection. The risks analysis document reveals that SPV ‘A’ has 0.4 risk of performance failure, whiles SPV ‘B’ has 0.3 risk of performance failure. Using Decision Tree Analysis, as a project manager, critically assess the options and advise on the best SPV to be chosen.
Jamison Construction has implemented a cost estimation system using regression analysis. The variable cost per hour of labor is $35 and the fixed cost was determined to be $125,000. If Jamison projects it will be working 200,000 hours in 2019, what is the projected total cost?
Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table:

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