It is the week before the Yule Ball Dance, and Victor and Ron are each contemplating whether to ask Hermione to the dance. The game tree above represents this interaction. Answer the following questions accordingly. i. There are subgames, including the whole game itself. (Note: As we did in class, count the single (terminal) decision nodes as subgames as well.) ii Victor has information set(s) Hermione has + information set(s)

DECISION TREE APPLIED TO PRODUCT DESIGN Silicon, Inc., a semiconductor manufacturer, is investigating the possibility of producing and market-ing a microprocessor. Undertaking this project will require either purchasing a sophisticated CAD system or hiring and training several additional engineers. The market for the product could be eitherfavorable or unfavorable. Silicon, Inc., of course, has the option of not developing the new productat all.With favorable acceptance by the market, sales would be 25,000 processors selling for $100 each. Withunfavorable acceptance, sales would be only 8,000 processors selling for $100 each. The cost of CADequipment is $500,000, but that of hiring and training three new engineers is only $375,000. However,manufacturing costs should drop from $50 each when manufacturing without CAD to $40 eachwhen manufacturing with CAD. The probability of favorable acceptance of the new microprocessor is .40; the probability of unfa-vorable acceptance is .60.

A distribution company purchases two parts from the same supplier. When the company places an order there is a common procurement cost of $1750, in addition to $300 (Product I) and $100 (Product II) of individual procurement costs. Product I has a weekly demand of 500 units with a standard deviation of 50 units, Product I values $200, target CSL is 94%, and lead time is one month. Product II has a weekly demand of 60 units with a standard deviation of 15 units, each Product II values $1200, target CSL is 99%, and lead time is 3 months. The company uses 24% as the inventory holding rate per year (1 year is 52 weeks or 12 months) • Assuming each product is individually ordered using periodic review policy, compute T*, M*, and TC of Product I and II individually. . Assuming these products are jointly replenished, what will be the T*, M₁, M₁, TC? What is the amount of savings when products are jointly ordered compared to individual ordering?

First blank option is "use" or "not use" Second blank option is "0" or "between 0 and 300" or "between 300 and 400" or "between 400 and 700"  Third option is "use" or "not use" Fourth option is "0" or "between 0 and 300" or "between 300 and 400" or "between 400 and 700"  Fifth option is "it has property rights to clean the water" or "the chemical lab has property rights to pollute the water"

Do not use chatgpt.

The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost($) 10 $ 11 12 Probability 0.25 0.45 0.30 Labor Cost ($) 20 22 24 25 Probability 0.10 0.25 0.35 0.30 Transportation Cost ($) 3 5 (a) Compute profit per unit for the base-case, worst-case, and best-case scenarios. Base Case using most likely costs Profit = $ /unit Worst Case Profit = $ /unit Best Case Profit = $ /unit Probability 0.75 0.25 (b) Construct a simulation model to estimate the mean profit per unit. (Use at least 1,000 trials.) (c) Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? Simulation will provide ---Select--- of the profit per unit values which can then be used to find ---Select--- ◆ of an unacceptably low…

= 1. (i) A utility function has the form U(w) aw³ +bw² where a, b E R. Assuming w > 0 and a 0, is U(w) ever suitable for a non-satiated and risk-averse investor? If it is, state the range of values of w this holds for as a function of a and b. You must include your working. (ii) Give an example of a utility function with DARA. Show all your working. (iii) An investor has IRRA. Would this investor prefer a fair gamble or to do nothing? Provide a short explanation of your answer.

A company is evaluating 3 different distribution plans for a new product. The company has developed best case (60% probability) and worst case (40% probability) estimates for each plan. Results are summarized in the table below. What is the optimal decision based on the maximum expected value criterion? Worst Best Plan 1 -2 10 Plan 2 3 6 Plan 3 4 5 Prob 0.4 0.6

Karpoff Kremes (KK) planned to sell 40,000 Kings at $20 each and 20,000 Kweens at $15 each. Actual sales of the former were 45,000 and 25,000 of the latter, at $19 and $16 respectively. Which is true of KK's mix variance? so $175,000 fav $28,333 fav $8,333 unfav Unable to determine