Assignment+6.Business+Statistics+Problems

Assignment+6.Business+Statistics+Problems - Quantitative...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Quantitative Methods Phoenix University Online Chapter 4 Problems 1, 2, 4, 13, 18
Background image of page 1

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

View Full DocumentRight Arrow Icon
1a. S 1 250 d 1 2 S 2 100 1 S 3 25 S 1 100 d 2 3 S 2 100 S 3 100 b. Decision Maximum Profit Minimum Profit d 1 250 25 d 2 100 75 Optimistic would choose d 1 approach ; the conservative would pick the d 2 approach Regret or opportunity loss table: Decision S 1 S 2 S 3 D 1 0 0 50 D 2 150 0 0 Maximum Regret: 50 d 1 and 150 for d 2 , I would select d 1 2.
Background image of page 2
a. Optimistic: d1, Conservative d3, Mini-max regret d3 b. I would prefer to use the Conservative approach because its best to understand the issue at hand before actually making a concrete decision. c. Optimistic: d1, Conservative d2, Mini-max regret d2 4 a. Decision: Which lease option to pick Chance event: Miles Driven b. Annual Miles Driven 12,000 15,000 18,000 Forno 10,764 11,160 12,960 Midtown 11,160 11,160 12,960 Hopkins 11,700 11,700 11,700 c. Optimistic: Forno Saab Conservative: Hopkins Automotive d. Midtown Motors e. Most likely: $11,160; Probability = 0.9 f. Midtown Motors or Hopkins Automotive 13. a. The decision is to choose what type of grapes to plant, the chance event is
Background image of page 3

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

View Full DocumentRight Arrow Icon
demand for the wine and the consequence is the expected annual profit contribution. There are three decision alternatives (Chardonnay, Riesling and both). There are four chance outcomes: (W,W); (W,S); (S,W); and (S,S). For instance, (W,S) denotes the outcomes corresponding to weak demand for Chardonnay and strong demand for Riesling. b.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

Assignment+6.Business+Statistics+Problems - Quantitative...

This preview shows document pages 1 - 5. Sign up to view the full document.

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