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

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

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