The packages mall faces following situation, their monthly sales statement indicates an increasementin sale every month. Thus, manager is able to assume, that the company will get net profit this year(based on the sales trend for the past few months), without obtaining other information such asoperational cost, change of taste in consumers and environment influence. Therefore, the managerassign probability that the packages mall will obtain profits is 65% and assign the probability makelosses is 35%. Based on these probabilities, the manager will make a decision to increase investment.Identify the decision-making condition, under which manager take decision? Give reasonsMr. Waleed a manager in ABC organization decides to spend RS 10,000 on a magazine ad,believing there are three possible outcomes for the advertisement to have influence in theirsales. First, 30% chance the advertisement will have only a small effect on sales, second 50%percent chance of a moderate effect, and third 20% chance of a very large effect. Identify thedecision-making condition, under which Mr. Waleed take decision? Give reasonsSamsung Electronics is a large company engaged in assembling of smartphone. Samsungconducted a research and determined, that an average worker can assemble 10 smartphonesin a day. The company sets a target to assemble 1500 units of smartphone per day. SamsungElectronics is offering attractive allowances to reduce employee absenteeism and turnover,to keep all the workforce are happy. The company compared actual performance of eachworker (observed through closed-circuit television) assembling of phones per day is 1300units only. To identify the reason, that some of the workers were busy in gossiping. Identifyand explain the function of management being discussed in the above lines.

1. Present situation in packages mall: -- Monthly sales statement indicates an increase in sale…

The packages mall faces following situation, their monthly sales statement indicates an increasement in sale every month. Thus, manager is able to assume, that the company will get net profit this year (based on the sales trend for the past few months), without obtaining other information such as operational cost, change of taste in consumers and environment influence. Therefore, the manager assign probability that the packages mall will obtain profits is 65% and assign the probability make losses is 35%. Based on these probabilities, the manager will make a decision to increase investment. Identify the decision-making condition, under which manager take decision? Give reasons

The packages mall faces following situation, their monthly sales statement indicates an increasement in sale every month. Thus, manager is able to assume, that the company will get net profit this year (based on the sales trend for the past few months), without obtaining other information such as operational cost, change of taste in consumers and environment influence. Therefore, the manager assign probability that the packages mall will obtain profits is 65% and assign the probability make losses is 35%. Based on these probabilities, the manager will make a decision to increase investment. Identify the decision-making condition, under which manager take decision? Give reasons

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter13: Decision Making Under Uncertainty

Section13.5: Bayes’ Rule And Decision Trees

Problem 1P

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