{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ARME 417 HOME WORK 3 KEY

# ARME 417 HOME WORK 3 KEY - ARME417 Homework#3 Answer Key...

This preview shows pages 1–3. Sign up to view the full content.

Distribution Statistics: Mean: \$151K Mode: \$60K Std Dev: \$233K Minimum: (\$130K) 5%: (\$130K) Median: \$60K 95%: \$490K Maximum: \$490K The expected net revenue value is the most sensitive to the projected Total Revenue (TR) of each product launch. The probability that there will be a strong economy slightly affects the expected net revenue value. ARME417 Homework #3 Answer Key Spring 2001 CORRECTED VERSION! 1.) a 15 points 1.) b 5 points

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

View Full Document
optimal choice is the Forest Job. No value of Ks between 0 and 1 will the In-Town Job ever be chosen. The overall recommendation to Techware should be to further analyzed their revenue projections for the various product launches and the probability that there will be a strong economy. Also, Techware’s decision is very risky given the fact that the standard deviation of the optimal decision is \$233,000. Therefore, Techware should reanalyze their estimates before making a decision. 1.) c
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 7

ARME 417 HOME WORK 3 KEY - ARME417 Homework#3 Answer Key...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online