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Part 1 of 3 - Part 1 This part of the question is based on the information from Problems 3-18 and 3-19 in the textbook. Question 1 of 9 10.

Part 1 of 3 - Part 1
This part of the question is based on the information from Problems 3-18 and 3-19 in the textbook.

Question 1 of 9 10.0 Points
If Bob would want to base his decision on the Maximin criterion, then which equipment would he choose?



A. Sub 100


B. Oiler J


C. Texan


D. The same as his brother Ken's choice
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Question 2 of 9 10.0 Points

Based on the information given in Problem 3-19 and the Table of Problem 3-17, the Expected Monetary Value (EMV) of Sub 100 is . (Please round to a whole dollar.)
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Question 3 of 9 10.0 Points

Based on the information given in Problem 3-19 and the Table of Problem 3-17, the Expected Monetary Value (EMV) of Oiler J is . (Please round to a whole dollar.)

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Question 4 of 9 10.0 Points
If Ken would want to maximize the Expected Monetary Value (EMV), then he should choose __________.



A. Sub 100


B. Oiler J


C. Texan
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Question 5 of 9 10.0 Points

If Ken believes that Sub 100 cannot get $300,000 even in a favorable market, then this figure needs to be at least less for Ken to change his decision. (Please round to a whole dollar.)

Hint: You may want to use the What-If-Analysis Goal Seek Tool in Excel as described in Week 1 PPP Slides (1-30).
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Part 2 of 3 - Part 2
This part of the question is based on the information from Problem 3-26 in the textbook.

Question 6 of 9 10.0 Points

The Expected Monetary Value (EMV) of producing 6 cases of cheese spread is . (Please round to a whole dollar.)

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Question 7 of 9 10.0 Points

The Expected Monetary Value (EMV) of producing 9 cases of cheese spread is . (Please round to a whole dollar.)

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Question 8 of 9 10.0 Points
John should manufacture _________ cases of cheese spread.



A. 6


B. 7


C. 8


D. 9
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Part 3 of 3 - Part 3
This part of the question is based on the information from Problem 3-34 in the textbook.

Question 9 of 9 20.0 Points

Construct a decision tree by fill-in the blanks below in reference to the following chart.

The decision choice at Decision 1 is and that at Decision 2 is Event 1 is and Event 2 is .

The probability for Prob1 is and that for Prob2 is .

Payoff 1 is and Payoff 2 is .

EMV 1 is and EMV 2 is .

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