The J.R. Ryland Computer Company is considering a plant expansion to enable the company to begin production of a new computer product. The company’s president must determine whether to make the expansion a medium- or large-scale project. Demand for the new product is uncertain, which for planning purposes may be low demand, medium demand, or high demand. The probability estimates for demand are 0.20, 0.10, and 0.70, respectively. Letting x and y indicate the annual profit in thousands of dollars, the firm’s planners developed the following profit forecasts for the medium- and large-scale expansion projects.       Medium-Scale Expansion Profit Large-Scale Expansion Profit     x    f(x) y    f(y) Demand Low 50   0.20 0   0.20 Medium 150   0.10 100   0.10 High 200   0.70 300   0.70     (a) Compute the expected value for the profit associated with the two expansion alternatives. Round your answers to whole numbers, if needed.     EV Medium-Scale   Large-Scale     Which decision is preferred for the objective of maximizing the expected profit?   - Select your answer -Medium-ScaleLarge-ScaleItem 3     (b) Compute the variance for the profit associated with the two expansion alternatives. Round your answers to whole numbers, if needed.     Var Medium-Scale   Large-Scale     Which decision is preferred for the objective of minimizing the risk or uncertainty?   - Select your answer -Medium-ScaleLarge-ScaleItem 6

Question

The J.R. Ryland Computer Company is considering a plant expansion to enable the company to begin production of a new computer product. The company’s president must determine whether to make the expansion a medium- or large-scale project. Demand for the new product is uncertain, which for planning purposes may be low demand, medium demand, or high demand. The probability estimates for demand are 0.20, 0.10, and 0.70, respectively. Letting x and y indicate the annual profit in thousands of dollars, the firm’s planners developed the following profit forecasts for the medium- and large-scale expansion projects.

 

    Medium-Scale Expansion Profit Large-Scale Expansion Profit
    x    f(x) y    f(y)
Demand Low 50   0.20 0   0.20
Medium 150   0.10 100   0.10
High 200   0.70 300   0.70

 

 

(a) Compute the expected value for the profit associated with the two expansion alternatives. Round your answers to whole numbers, if needed.
 
  EV
Medium-Scale  
Large-Scale  
  Which decision is preferred for the objective of maximizing the expected profit?
  - Select your answer -Medium-ScaleLarge-ScaleItem 3
   
(b) Compute the variance for the profit associated with the two expansion alternatives. Round your answers to whole numbers, if needed.
 
  Var
Medium-Scale  
Large-Scale  
  Which decision is preferred for the objective of minimizing the risk or uncertainty?
  - Select your answer -Medium-ScaleLarge-ScaleItem 6

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Math
Statistics

Measures

Data

Related Statistics Q&A

Find answers to questions asked by students like you.

Q: Lianna would like to find out if a new type of therapy works. She recruits 15 patients with phobias ...

A: From the given information, Lianna wants to test whether the new type of therapy works or not. For t...

Q: a) Grace Floral Shop sells several types of roses for all occasions. It is known that 43% of the ros...

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...

Q: Among the 30 largest U.S. cities, the mean one-way commute time to work is 25.8 minutes. The longest...

A: Solution: Let X be the travel time in New York City. From the given information, X follows normal di...

Q: Find the mean and standard deviation for the following probability distribution. x P(x) 6 0.41 7 0.2...

A: Given,

Q: What is the answer to these? 1) a warehouse employs 23 workers on first shift, 16 workers on second ...

A: The probability of worker from the third shift is given by  p = 14/53 = 0.2642n =8 The probability o...

Q: In a study conducted to investigate browsing activity by shoppers, each shopper was initially dlassi...

A: a. The data represent the measure of comfort levels for each shopper in a store. Denote μ1,μ2,μ3 as ...

Q: In a study conducted to investigate browsing activity by shoppers, each shopper was initially classi...

A: Given information: The data represents the values of 3 variables Non-browser, Light-browser and Heav...

Q: I need help i don’t understand this at all

A:    Since you have asked multiple question, we will solve the first question for you. If youwant any ...

Q: Using your favorite statistics software package, you generate a scatter plot with a regression equat...

A: The percentage of variation in y is explained by the variation in the values of x is given by the va...

Q: About 12% of all college students re currently enrolled in a statistics course. A random sample of n...

A: Click to see the answer

Q: Answer  all the questions in one or two lines  1 if the  null is true , and there is no real relatio...

A: 1) In linear regression generally the null hypothesis is that "The slope of the regression line is e...

Q: In a poll of 27 students, 65% ±6% were in favor of increasing the amount of time between classes. Pr...

A: From the provided information, Sample size (n) = 27 Sample proportion (p̂) = 0.65 Confidence level =...

Q: I need answers to A,B,C,D please

A:   a) The probability that a spade given the card is black is obtained below: The total number of car...

Q: The red blood cell counts​ (in millions of cells per​ microliter) for a population of adult males ca...

A: Solution: Let X be the red blood counts for a population of adult males. From the given information,...

Q: In a student survey, forty-one part-time students were asked how many courses they were taking The (...

A: Click to see the answer

Q: Coronary stenosis (narrowing of the artery supply to the heart muscle) is a direct cause of heart di...

A: Given Information:  Mean luminal diameter of a seropositive patient (x1) = 1.24 mm Sample size of se...

Q: A restaurant will select 1 card from a bowl to win a free lunch. Jo puts 5 cards in the bowl. The bo...

A: Probability is given by Number of possible event/ total number of possible outcomes I.e number of po...

Q: 5

A: Click to see the answer

Q: Bad debts 10.000 Electricity and water 40,000 salary201,000 insurance 98,000 Depreciation furniture ...

A: NOTE : As per BARTLEBY guidelines, when multiple sub parts of the question are given, then first thr...

Q: A certain drug is used to treat asthma. In a clinical trial of the drug, 18 of 282 treated subjects ...

A: Population proportion = 0.11 Sample proportion = 18/282 = 0.0638  

Q: Four families decided to go watch a movie on a Friday evening. The Rahmans (R) have 5 family members...

A: Given: x is the price of a movie ticket. y is the price of a pop-corn. z is the price of a scoop of ...

Q: About 26% of all Salinas residents take a trip out of state each year. Hint: consider a binomial dis...

A: Binomial distribution : If random variable X follows Binomial distribution with number of trials n a...

Q: Assume that a simple random sample has been selected from a normally distributed population and test...

A: Sample size, n= 6 and data is normally distributed so we use test Statistic t.  t= (X bar - mu)/sigm...

Q: The local police department attempted to estimate average vehicle speeds along a strip of Main Stree...

A: Standard error- is the standard deviation of its sampling distribution or an estimate of that standa...

Q: Every year, the students at a school are given a musical aptitude test that rates them from 0 (no mu...

A: Click to see the answer

Q: A container contains marbles;4 blue , 2 green, 1 white, and 3 red if 2 are picked, with no replaceme...

A: Solution: From the given information, a container contains 4 blue marbles, 2 green marbles, 1 white ...

Q: Which of the following is not a type of t-test? A. Single sample t-test B. Independent sample t-test...

A: From the provided information, A t-test is a statistical test which is used to determine if there is...

Q: Let x be the number of potential weapons detected by a metal detector at an airport on a given day. ...

A: From the given data: x P(x) x P(x) x2 P(x) 0 0.14 0 0 1 0.12 0.12 0.12 2 0.18 0.36 0.72 3...

Q: Jse your Ti-84 to find the mean and standard deviation of the discrete probabil distribution below. ...

A:   Open the calculator. Click on Stat > Edit > Enter Plugin the values of x and P(x) in L1 and ...

Q: Find the value of e, such that f(r) is the probability function of a random variable:

A: Given f(x) we need to find value of c   

Q: The U.S. National Center for Health Statistics complies birth statistics and publishes the results i...

A: Due to the honor-code, we are only supposed to answer 3 sub-parts, and that you haven't specified wh...

Q: The average student loan debt for college graduates is $25,600. Suppose that that distribution is no...

A: Given: μ=25600σ=13450

Q: Consider a large ferry that can accommodate cars and buses. The toll for cars is $3, and the toll fo...

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...

Q: The following data represent the concentration of organic carbon (mg/L) collected from organic soil....

A: From the given information n=20x=18.37s=7.5α=0.99 The degrees of freedom df=n-1=20-1=19 We can use b...

Q: The mean is to central tendency as _________ is to variability.a) the dependent variable b) the stan...

A: We know that mean is a measure of central tendency.

Q: Find P(X > x) and show that P(X < 3) = 1-q*. Explain why P[X is odd(= 1,3,5,7, ..)]) = q x P[X is ev...

A: Given probability mass function of X, we need to find required probabilities as mentioned in questio...

Q: Is the magnitude of an earthquake related to the depth below the surface at which the quake occurs? ...

A: Given:   x y 2.5 5.2 4 10.3 3.4 10.8 4.4 10.3 2.4 8.3

Q: A researcher wishes to examine the relationship between years of schooling completed and the number ...

A: Given regression equation is y^ = 4 - 3x    

Q: Explain why each option is true/false.

A: Based on the property of cumulative distribution, P(a&lt;X&lt;b) = F(b) - F(a) F(a) + P(a&lt;X&lt;b)...

Q: Dating CohabitingMarried 149 273 Research subjects were followed from adolescence to adulthood, and ...

A: Note: Hi there! Thank you for posting the question. As your question has more than 3 parts, we have ...

Q: 5. Explain the main idea(s) of the Central Limit Theorem in your own words.    6. Can the value of t...

A: Thank you for posting the question. Since you have asked multiple question, we will solve the first ...

Q: Suppose we have a binomial experiment in which success is defined to be a particular quality or attr...

A: a) Suppose n = 43 and p = 0.15.np=430.15=6.45nq=431-0.15=430.85=36.55 No, p^ can not be approximated...

Q: Consider the following hypothesis test. Ho : 44 S0 Ha : H4 >0 The following data are from matched sa...

A: (a) State the hypotheses.   Obtain the difference value for each of the element. The difference val...

Q: If the average number of visitors to a bank is six people per minute, then the probability of two pe...

A: Click to see the answer

Q: Can you answer question 2 and question 3

A: Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for y...

Q: If E(X) = 6 and E[(X) (X-1) ] = 51, find the second moment= 1 and the variance of X= 2

A: Given Data: E(X)=6 E[(X) (X-1)]=51

Q: Consider the binomial experiment where 28 students are sampled with a probability of 10% of being le...

A: Here given that, Sample size, n= 28 And proportion, p= 10% =0.10 So q= 1-p= 1-0.10= 0.90 So X~b(28,0...

Q: Can help to explain why each option is correct or incorrect? Thank you!

A: we know that variance is always positive that is V(X)&gt;0 and also probability is in range [0,1], t...

Q: If the percentage of defective in a factory was 0.30, a random sample of 200 units was taken, and 50...

A: Let X be a random variable which denotes the number of defective units. p=0.3n=200X~Bin(n,p) The pro...

Q: b)      For a group of 300 cars the numbers, classified by colour and country of manufacture, are sh...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...