Determine whether or not to stock a large supply of steel. There is uncertainty in the price of steel. Based on past history the following data are available   Price (future) Prob (Price) PW if stocked PW if not stocked High 0.3 100000 0 Medium 0.5 -10000 0 Low 0.2 -50000 0   What is the probability that stocking steel will result in a negative present worth (PW)?

15

Assume you are faced with two decision alternatives and two states of nature whose profit payoff table is shown below. Decision Alternative State of Nature 1 State of Nature 2 Decision 1 25 30 Decision 2 45 15 The probability of state of nature 1 is 0.4.(a) Compute the expected value of each alternative.(b)  Which decision is the optimal decision?(c) Compute the expected value with perfect information.(d) Compute the expected value of perfect information.

Question 74.Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line

Please no written by hand and no emage Suppose a company can select among two decisions (d1 and d2) and face three states of nature (s1, s2 and s3) with the following payoff table: Decision      s1    s2    s3     d1           150      200     200     d2             50      200     500 The probabilities of s1, s2, and s3 are unknown. Using the optimistic approach, what is the optimal decision and what is the value of the payoff? Place the optimal decision in the first answer box and the maximum payoff used to arrive at this decision in the second.

Don’t use excel Show work

Determine the two best decision alternatives by a conservative decision maker. Decision dl d2 d3 d4 d1 and d4 -350 d2 and d3 d3 and d4 sl States of Nature 900 d1 and d2 d1 and d3 500 700 750 -380 210 -360 $3 1100 600 -370 700

Solve (c) and (d) please

2.  Airtight Manufacturing produces plastic cases that utility companies buy to protect electronic components on utility poles from weather damage. (a)   The protective case currently used by utility companies has a 0.045 probability of cracking or breaking in any given year. When a protective case cracks or breaks, the utility company incurs a $800 expense to replace the case. What is the expected value of the utility company’s repair costs per protective case? Show your work. (b)   Airtight has recently developed a stronger material for its protective case. The use of this stronger material reduces the case’s probability of cracking or breaking and serves as a differentiating factor for estimating this product’s VTC. Use the product-needs matrix described in the course to classify this differentiating factor. What type of product characteristic is it? What type of customer need does it satisfy? Justify your answers. (c)   If this stronger material enables Airtight’s new protective…

a) There is possibility of risk occurrence even when risk reduction techniques are n place. How will deal with this scenario and how will you justify cost-effectiveness of a risk reduction technique?  b) Identify the schedules that are used on daily basis for the control and management of the project.