Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 12.3, Problem 16P
Summary Introduction
Interpretation: Process stability needs to be determined based on the given data.
Concept Introduction: P chart is a statistical control chart which helps in monitoring the non-defective pcs in a sample.
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A television network earns an average of $25 million each season from a hit program and loses an average of $8 million each season on a program that turns out to be a flop. Of all programs picked up by this network in recent years, 25% turn out to be hits and 75% turn out to be flops. At a cost of C dollars, a market research firm will analyze a pilot episode of a prospec- tive program and issue a report predicting whether the given programwill end up being a hit. If the program is actually going to be a hit, there is a 75% chance that the market researchers will predict the program to be a hit. If the program is actually going to be a flop, there is only a 30% chance that the market researchers will predict the program to be a hit.a. What is the maximum value of C that the network should be willing to pay the market research firm?b. Calculate and interpret EVPI for this decision problem.
The average number of operational losses in a year at a particular plant is 18, so the number of losses in a year is distributed Poisson, with mean 18.) Given the distribution parameter from the previous question:
What is the average number of weeks between operational losses (assume 52 weeks per year)?
What is the probability that two operational losses will occur within two weeks of each other (i.e., given an operational loss today, what’s the probability the next one will happen in less than two weeks)?
A television network earns an average of $65 million each season from a hit program and loses an average of $25 million each season on a program that turns out to be a flop. Of all programs picked up by this network in recent years, 30% turn out to be hits; the rest turn out to be flops. At a cost of C dollars, a market research firm will analyze a pilot episode of a prospective program and issue a report predicting whether the given program will end up being a hit. If the program is actually going to be a hit, there is a 65% chance that the market researchers will predict the program to be a hit. If the program is actually going to be a flop, there is only a 40% chance that the market researchers will predict the program to be a hit.
a. What is the maximum value of C that the network should be willing to pay the market research firm? If needed, round your answer to three decimal digits.
Chapter 12 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 12.1 - Prob. 2PCh. 12.1 - Prob. 3PCh. 12.1 - Prob. 4PCh. 12.1 - Prob. 5PCh. 12.1 - Prob. 6PCh. 12.2 - Prob. 7PCh. 12.2 - Prob. 8PCh. 12.2 - Prob. 9PCh. 12.2 - Prob. 10PCh. 12.2 - Prob. 11P
Ch. 12.2 - Prob. 12PCh. 12.2 - Prob. 13PCh. 12.3 - Prob. 14PCh. 12.3 - Prob. 15PCh. 12.3 - Prob. 16PCh. 12.3 - Prob. 17PCh. 12.4 - Prob. 18PCh. 12.4 - Prob. 19PCh. 12.4 - Prob. 20PCh. 12.4 - Prob. 21PCh. 12.5 - Prob. 22PCh. 12.6 - Prob. 23PCh. 12.6 - Prob. 24PCh. 12.6 - Prob. 25PCh. 12.6 - Prob. 26PCh. 12.6 - Prob. 27PCh. 12.6 - Prob. 28PCh. 12.9 - Prob. 29PCh. 12.9 - Prob. 30PCh. 12.9 - Prob. 31PCh. 12.9 - Prob. 32PCh. 12.9 - Prob. 33PCh. 12.10 - Prob. 34PCh. 12.10 - Prob. 35PCh. 12.10 - Prob. 37PCh. 12.10 - Prob. 38PCh. 12.10 - Prob. 39PCh. 12.10 - Prob. 40PCh. 12.11 - Prob. 41PCh. 12.11 - Prob. 42PCh. 12.11 - Prob. 43PCh. 12.11 - Prob. 44PCh. 12.12 - Prob. 46PCh. 12.12 - Prob. 47PCh. 12.12 - Prob. 48PCh. 12 - Prob. 49APCh. 12 - Prob. 50APCh. 12 - Prob. 51APCh. 12 - Prob. 52APCh. 12 - Prob. 53APCh. 12 - Prob. 54APCh. 12 - Prob. 55APCh. 12 - Prob. 57APCh. 12 - Prob. 58APCh. 12 - Prob. 59APCh. 12 - Prob. 60APCh. 12 - Prob. 61APCh. 12 - Prob. 62APCh. 12 - Prob. 63APCh. 12 - Prob. 64APCh. 12 - Prob. 65APCh. 12 - Prob. 66APCh. 12 - Prob. 67APCh. 12 - Prob. 68APCh. 12 - Prob. 69APCh. 12 - Prob. 70AP
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