ORIE_451_Homework__8_2008 - ORIE 451/551 Homework #8 Due...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 451/551 Homework #8 Due Friday, April 4, 2008 1. Audi is planning to introduce a new SUV, and the Bill Cooke Imports dealership has the opportunity to order up to 4 of them for sale. Mr. Cooke estimates that the profits will be determined by the reviews the new vehicle gets on the automotive Web site Edmunds.com. Given the PW’s in the table, find the number of SUV’s Bill Cooke should order based upon: a) Laplace b) Maximin c) Maximax d) Minimax regret SUV’s Ordered Poor review Good Review Very Good Review Excellent Best in Class 0 $0 $0 $0 $0 $0 1 ($1,000) $3,000 $6,000 $10,000 $11,000 2 ($5,000) ($1,000) $4,000 $8,000 $9,000 3 ($9,000) ($4,000) $3,000 $12,000 $15,000 4 ($14,000) ($7,000) $2,000 $12,000 $20,000 2. Diamond Joe Quimby is considering building a convenience store in Springfield. The operating income of the store is expected to depend largely on whether the new highway to Shelbyville is built, and whether or not gasoline prices increase to over $4 per gallon. There is a 40% chance that the new highway will be built, and a 30% chance that gas
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/06/2010 for the course ORIE 451 at Cornell University (Engineering School).

Page1 / 2

ORIE_451_Homework__8_2008 - ORIE 451/551 Homework #8 Due...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online