Cliff Branch’s firm was trying to decide if it should submit a proposal for Project 1, Project 2, both projects, or neither project. Cliff’s firm will win the contract for Project 1, which is estimated to be worth $300,000 in profits with 20 percent probability (p = 0.2). There is an 80 percent probability (P = 0.80) that the firm will not win the contract for Project 1, and the outcome is estimated to be $40,000 in loss. Suppose there is a 20 percent probability that Cliff’s firm will lose $50,000 on Project 2, a 10 percent probability that it will lose $20,000, and a 70 percent probability that it will earn $60,000. Draw a decision tree diagram and calculate the EMV for each project. Write a paragraph explaining which projects Cliff’s firm should bid on. Be sure to use the EMV information and your personal risk tolerance to justify your answer. [Show the details of your work]

Joel Deaine, CEO of Deaine Enterprises Incorporated (DEI), is considering a special offer to manufacture a new line of women’s clothing for a large department store chain. DEI has specialized in designer women’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI, and the order would be renewed automatically for two more years, presumably to continue after that point.   Required: Explain two of the implementation tools covered in this chapter that Joel can use to implement his strategy.

Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a probability of 0.6 that the ATR Co. will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Co. does not follow with a competitive product, Weiss's expected profit is $40,000; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $10,000 profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $600,000; if ATR does compete for this market, Weiss expects a loss of $100,000. What is the best decision based on expected monetary value (EMV)? What are the EMV and the expected value of perfect information (EVPI)? The best decision is to select the new plant with the EMV of $320,000 and the EVPI is $364,000. The best decision is to select the assembly line with the EMV of $180,000 and the EVPI is $66,000. The best decision is to select the assembly line…

Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be​ unpredictable, so​ Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But​ Build-Rite must decide now whether to hire more​ employees, do​ nothing, or develop subcontracts with other home improvement contractors.​ Build-Rite has developed the following payoff​ table:

Pls help ASAP for both

Travis Kellogg is a sales representative for Xerox and his territory includes St. Louis and the surrounding suburbs. One of his accounts is Cintas, which offers a wide range of products to businesses. Travis was working with the Cintas division manager, Kiera Valentine, to gain her approval to purchase a networked printer and copier for the local office. The price of the printer/copier including installation would be $5,490, but Kiera has a spending limit of $5,000. She and Travis try to negotiate how Xerox can get the order and Kiera can get the printer but stay within her division’s budget. Eventually, they agreed to a deal of $5,000 for the printer/copier, plus Cintas would deliver and maintain welcome mats or rugs in Xerox’s St. Louis office.  Travis and Kiera successfully utilized _____ to facilitate the exchange. A.trade B.credit C.money D.bartering E. negotiation

2 true or false  If the decision doesn’t involve risk and uncertainty, utility is the numerical score to measure the attractiveness of a course of action.

Use the identified following five cost risks , and do the qualitative analysis of risk using the risk matrix shown below? 1. Scope Creep 2. Uncertain Market Conditions 3- Inadequate Risk Assessment 4. Poorly Defined Project Requirements 5. Unforeseen Site Conditions

A new minor league baseball team is coming to town and the owners have decided to build a new stadium, either small or large. The success of the team with regard to ticket sales will be either high or low with probabilities of 0.75 and 0.25, respectively. If demand for tickets is high, the large stadium would provide a payoff of approximately $20 million. If ticket sales are low, the loss on the large stadium would be $5 million. If a small stadium is constructed, and ticket sales are low, the payoff is $500,000 after deducting the cost of construction. If ticket sales are high, the team can choose to build an upper deck, or to maintain the existing facility. Expanding the stadium in this scenario has a payoff of $10 million, whereas maintaining the same number of seats has a payoff of only $3 million. a. Draw a decision tree for this problem. b. What should management do to achieve the highest expected payoff?

Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property, it can then be sold for $156,000. The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100,000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100,000 and $146,000. (a) What is the estimate of the probability Strassel will be able to obtain the property using a bid of $126,000? (Use at least 5,000 trials. Round your answer three decimal places.)   (b) How much does Strassel need to bid to be assured of obtaining the property? $126,000 $136,000     $146,000   (c) Use the simulation model to compute the profit…