Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company's new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to provit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits( in thousands of dollars). Suppose the management of Myrtle Air Express believes that the probability of strong demand is 0.7 and the probability of weak demand is 0.3. Demand for Service Servive Strong Weak Full-price $960 -$490 Discount $670 $320 a. What is the expected value of discount service? b. What is the probability value for strong demand that equates the expected values of the two decision alternatives? Round answer to four digits (nearest ten thousandth). c. Which decision alternative is optimal with a probability value for strong demand above that found in the previous question?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Myrtle Air Express decided to offer direct service from Cleveland to Myrtle Beach. Management must decide between a full-price service using the company's new fleet of jet aircraft and a discount service using smaller capacity commuter planes. It is clear that the best choice depends on the market reaction to the service Myrtle Air offers. Management developed estimates of the contribution to provit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits( in thousands of dollars). Suppose the management of Myrtle Air Express believes that the
Demand for Service
Servive Strong Weak
Full-price $960 -$490
Discount $670 $320
a. What is the expected value of discount service?
b. What is the probability value for strong demand that equates the expected values of the two decision alternatives? Round answer to four digits (nearest ten thousandth).
c. Which decision alternative is optimal with a probability value for strong demand above that found in the previous question?
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