Question 4 You are selling two goods, 1 and 2, in a market consisting of three consumers with the following reservation prices: Reservation Price (Rands) Consumer Good 1 Good 2 Abby 40 120 Bella 80 80 Carla 120 40 The unit cost of each product is R50. 4.1 Compute the optimal prices and profits for each of the following scenarios: (a) the goods are sold separately (b) pure bundling (c) mixed bundling. 4.2 Which strategy would be most profitable? Explain why.
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- Question #4 - Jerry Smith is thinking about opening a bicycle shop in his hometown. Jerry loves to take his own bike on 50-mile trips with his friends, but he believes that any small business should be started only if there is a good chance of making a profit. Jerry can open a small shop, a large shop, or no shop at all. The profits will depend on the size of the shop and whether the market is favorable or unfavorable for his products. Because there will be a 5-year lease on the building that Jerry is thinking about using, he wants to make sure that he makes the correct decision. Jerry is also thinking about hiring his old marketing professor to conduct a marketing research study. If the study is conducted, the study could be favorable (i.e., predicting a favorable market) or unfavorable (i.e., predicting an unfavorable market). Develop a decision tree for Jerry.Question 5 AIT computer department purchases a new computer every two years with preferences for three models; T1, T2 and T3. If the present model is T1, the next computer may be T2 with probability 0.2 or T3 with probability 0.15. If the present model is T2, the probabilities of switching to T1 and T3 are 0.6 and 0.25 respectively. And if present model is T3 then, the probabilities of switching to T1 and T2 are 0.5 and 0.1 respectively. Represent the situation as a Markov chain.question 7 You manage an ice cream factory that makes two flavors: Creamy Vanilla and Continental Mocha. Into each quart of Creamy Vanilla go 2 eggs and 3 cups of cream. Into each quart of Continental Mocha go 1 egg and 3 cups of cream. You have in stock 450 eggs and 750 cups of cream. You make a profit of $3 on each quart of Creamy Vanilla and $2 on each quart of Continental Mocha. How many quarts of each flavor should you make to earn the largest profit? HINT [See Example 2.] (If an answer does not exist, enter DNE.) Creamy Vanilla quartsContinental Mocha quarts
- QUESTION SIX (a) Suppose that a decision is faced with three decision alternatives and four states of nature. The following profit payoff table is constructed: Alternatives State of Nature 1S 2 S 3 S 4 S 1Α 2Α 3Α 18 15 13 12 14 16 15 10 19 8 11 15 Assuming that the decision maker has no knowledge about the probabilities of occurrence of the four states of nature, find the decisions to be recommended under each of the following criteria: iii. Minimax Reject criterion iv. Hurwicz criterion with 0.6 α =QUESTION A 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 following payoff table: State of Nature Favourable Stable Unfavourable Product 0.2 0.7 0.1 Widget $ 120,000 $ 70,000 $ –30,000 Hummer 60,000 40,000 20,000 Nimnot 35,000 30,000 30,000 Determine the best decision, using the following decision criteria Maximax Maximin LaPlaceQUESTION A 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 following payoff table: State of Nature Favourable Stable Unfavourable Product 0.2 0.7 0.1 Widget $ 120,000 $ 70,000 $ –30,000 Hummer 60,000 40,000 20,000 Nimnot 35,000 30,000 30,000 Compute the expected value for each decision and select the best one. Develop the opportunity loss table and compute the expected opportunity loss for each product.
- QUESTION A 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 following payoff table: State of Nature Favourable Stable Unfavourable Product 0.2 0.7 0.1 Widget $ 120,000 $ 70,000 $ –30,000 Hummer 60,000 40,000 20,000 Nimnot 35,000 30,000 30,000 Compute the expected value for each decision and select the best one.QUESTION A 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 following payoff table: State of Nature Favourable Stable Unfavourable Product 0.2 0.7 0.1 Widget $ 120,000 $ 70,000 $ –30,000 Hummer 60,000 40,000 20,000 Nimnot 35,000 30,000 30,000 Compute the expected value for each decision and select the best one. B.Develop the opportunity loss table and compute the expected opportunity loss for each product.Question 1. Busch Gardens Sweets is preparing for the Halloween rush. They prepare two sizes of Peanut/Raisin Ghoulish Delight and need to calculate how many bags of deluxe and standard mixes they can produce. • The deluxe mix takes 0.9 of a pound of raisins and 0.4 of a pound of peanuts.• The standard mix takes 0.7 of a pound of raisins and 0.6 of a pound of peanuts.The shop has 100 pounds of raisins and 70 pounds of peanuts. The profit on the deluxe mix is $1.80 and the standard mix profit is $1.60. The owner wants no more than 110 bags of each type prepared. Do not forget the non-negativity constraint and remember that you cannot sell partial bags (whole numbers only). Use Excel Solver Question 2. Take a screenshot (snip tool) of you excel spreadsheet and save it.
- Question 5: For a coffee shop, the cost associated with cups, coffee beans and lids are examples of ____costs. These ______ considered when building a MCS. Group of answer choices a Fixed costs; should be b Fixed costs; should not be c Variable costs; should not be d Variable costs; should be e None of these, these are programmed costsQuestion 1The Rotary Club is holding a pizza sale to finance outreach projects. The Club made an agreement to purchase pizza from Pizza Hut at a 30% discount which the Rotary Club can then resell for a profit. It is expected that of the 500 families in the community, at most 70% will buy pizza. Based on a survey of their personal preferences, the students believe that they should orderno more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. They also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. The standard price (before discount) for the cheese, pepperoni and vegetarian is $12, $15 and $14, respectively. The Rotary Club makes a profit of 10%, 15% and 20%, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. a) Formulate a linear programming model that would determine the optimal solution. An explanation for the derivation of EACH equation should…Question 3: A catering company must have the following number of clean napkins available at the beginning of each of the next four days: day 1: 15, day 2: 12, day 3: 18, and day 4: 6. After being used, a napkin can be cleaned by one of two methods: fast service or slow service. Fast service costs $0.10 per napkin, and a napkin cleaned via fast service is available for use the day after it is last used. Slow service costs $0.06 per napkin, and a napkin cleaned via slow service is available two days after they were last used. New napkins can be purchased for a cost of $0.20 per napkin. Part A: Formulate the problem as a minimum cost transportation problem. Part B: Use Excel Solver to solve the problem (provide exact values for all variables and the optimal objective function).