Pay Off Tables

  9) stomach rack up remit for the myrtle air distil helping| vigorous| weak| Full set| $960| -$490| brush off| $670| $320| a) The finis to be made here is to choose the typesetters case of process to provide. The circumstances way out is the level of withdraw for the myrtle Air table service. The progeny is the amount of quarterly profit that the corporation receives. There argon two determination alternatives ( adequate price and discount service). There are two outcomes for the chance event ( sound demand and weak demand). consequently 2 decision alternatives and 2 outcomes for chance events..! b) Opportunity termination or regret table | High demand| down(p) demand| Maximum regret| Full service| 0| 810| 810| send packing service| 290| 0| 290| High demand discount service 960-670=$290 Low demand in full service=320-(-490)=$810 From the above pay off table by optimistic border on the decision is the full price service From the pay off tables by conservative near the decision is discount service..!

And from the above batch loss or regret table by minimax approach discount service is advised..!(the one with minimum regret) c) hazard of strong demand=0.7 fortune of weak demand=0.3 anticipate pry (full sevice)=0.7(960)+(0.3)(-490)=$525 thousands judge value(discount service)=0.7(670)+0.3(320)=$565 thousand Now from the pass judgment values the expected value is to a greater extent for discount service Therefore the optimal decision is Discount service d) probability of strong demand=0.8 probability of weak demand=0.2 pass judgment value (full sevice)=0.8(96 0)+(0.2)(-490)=$670 thousands Expected va! lue(discount...If you want to get a full essay, order it on our website: OrderEssay.net

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