Need help, thanksss Question 4A high school student, who started doing photography as a hobby, is considering going into thephotography business. The anticipated payoff table is:AlternativeState of NatureStartDo Not Startnew business-RM12,000RM10,000new businessPoor0.Fair0.SuperRM15,000The following prior probabilities are assigned to the states of nature:P (poor) = 0.4, P (fair) = 0.4, and P (super) = 0.2.Calculate the expected monetary value for each act with present information. What decisionshould be made using the EMV criterion?Convert the payoff table to an opportunity loss table.Calculate the expected opportunity loss for each act with present information. What decisionshould be made using the EOL criterion?What is the expected payoff with perfect information?What is the expected value of perfect information? What does it mean?(а)(b)(c)(d)(e)

Note: - Since we can answer only up to three subparts we will answer the first three (a, b, and c)…

Answered: Question 4 A high school student, who…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

See similar textbooks

Similar questions

Decision Table with Conditional Values for Happy Company: Product Market Condition and Payoff (RM) Favourable Stable Unfavourable 8,000 5,000 7,000 6,000 3,000 6,000 -5,000 -1,200 -1,000 A В C Do Nothing Probability 0.4 0.3 0.3 Opportunity loss table for Happy Company.: MARKET CONDITION AND PAYOFF (RM) MAXIMUM IN PRODUCT FAVOURABLE STABLE UNFAVOURABLE A ROW (RM) 5,000 5,000 3,000 A 3,000 3,000 1,200 1,000 8,000 1,000 1,000 Do Nothing Probability 8,000 6,000 0.3 0.4 0.3 Based on the above data answer the following questions: (a) Construct the expected opportunity loss table for Happy Sdn. Bhd. (b) State the best decision (value and product) under EOL method.
Subject: Logistic Management Q#6) What is Porters Power Model explain with example? Q#7) What is risk management & mitigation explain with example?
Topic: ProbabilityGoal: In your business planning, you will employ mathematics probability to increase your chances of success.You play the role of a tiny business owner who wants to expand into a much larger enterprise. You must write a written report and deliver it to the group on the most likely outcome(s) of the business you wish to start.The target audience is a group of small company owners who could be interested in partnering with you. Product: A written report on the business's likely results that will be given to the group. Success Criteria: The written report that will be provided must be... - Represents genuine business problems or patterns. - Persuasive, based on probability mathematics.
A. A company wants to produce a souvenir with a marketing life of six months. Uncertainty surrounds the likely sales volume as well as the fixed costs of the venture as shown below: Sales units Probability Contrn. /unit Probability Fixed cost K7 K5 100 000 0.3 80 000 0.6 60 000 0.1 1.0 0.5 0.5 1.0 Determine the expected value of the contribution K400 000 K450 000 K500 000 Probability 0.2 0.5 0.3 1.0
Previous Problem Problem List Next Problem (1 point) Using diaries for many weeks, a study on the lifestyles of visually impaired students was conducted. The students kept track of many lifestyle variables including how many hours of sleep obtained on a typical day. Researchers found that visually impaired students averaged 9.2 hours of sleep, with a standard deviation of 2.24 hours. Assume that the number of hours of sleep for these visually impaired students is normally distributed. (a) What is the probability that a visually impaired student gets less than 6.4 hours of sleep? answer: (b) What is the probability that a visually impaired student gets between 6.2 and 8.84 hours of sleep? answer: (c) Thirty percent of students get less than how many hours of sleep on a typical day? answer: hours Note: You can earn partial credit on this problem. Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining.
Problem 3-11 Future Value of Reduced Spending [LO3-4] Brenda plans to reduce her spending by $80 a month. Calculate the future value of this increase in savings over the next 10 years. (Assume an annual deposit to her savings account, and an annual interest rate of 4 percent.) (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D) Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and final answer to 2 decimal places. Future value
true or false 6. Certainty-equivalence methods were found to yield greater risk seeking than probability-equivalence methods.
Question 6 A Discrete Probability Distribution is given below: Class A B с D Probability (%) 18 33 27 22 Calculate the probability that class A does NOT occur. Express your answer as a whole number without the percentage sign (%). A
Campers Ltd was established in 2010 and have had impressive returns for the years precedingCOVID-19. After going into the reserves to keep the business afloat, they have had to developnew strategies. The board has approved an initiative that requires the company to take a R50million.(Information extracted from their Balance Sheet)Total Assets – R50 millionTotal Liabilities – R 40 million(Information extracted from the Income Statement)Bank account – R25 millionRental – R5 million (per annum)Utilities (fibre, telephone, water and electricity, security) – R1 millionSalaries -R15 million Q.2.2 Assume for this question only that Mrs Funeka, the chairperson of the board, takes it upon herself to acquire a loan on behalf of the company without the necessary resolution. The contract is entered into between Mrs Funeka on behalf of the company and Kekana Investments. Is the contract valid? Can the company be bound by the agreement? In your answer discuss the following:• The impact of the…
In 2015, Keenan Company paid dividends totaling $3,600,000 on net income of $10.8 million. Note that 2015 was a normal year and that for thepast 10 years, earnings have grown at a constant rate of 10%. However, in 2016, earnings are expected to jump to $14.4 million and the firm expects to have profitable investment opportunities of $8.4 million. It is predicted that Keenan will not be able to maintain the 2016 level of earnings growth because the high 2016 earnings level is attributable to an exceptionallyprofitable new product line introduced that year. After 2016, the company will return to its previous 10% growth rate. Keenan’s target capital structure is 40% debt and 60% equity.a. Calculate Keenan’s total dividends for 2016 assuming that it follows each of the following policies:1. Its 2016 dividend payment is set to force dividends to grow at the long-run growth rate in earnings.2. It continues the 2015 dividend payout ratio. 3. It uses a pure residual dividend policy (40% of the…
Capital Budgeting with Taxes (Non-MACRS Depreciation); Sensitivity Analysis GravinaCompany is planning to spend $6,000 for a machine that it will depreciate on a straight-line basisover 10 years with no salvage value. The machine will generate additional cash revenues of $1,200 ayear. Gravina will incur no additional costs except for depreciation. Its income tax rate is 35%. Thepresent value annuity factor for 15%, 10 years (from Appendix C, Table 2) is 5.019.Required1. What is the payback period of the proposed investment (in years, and rounded to 1 decimal place) underthe assumption that the cash inflows occur evenly throughout the year?2. What is the accounting (book) rate of return (ARR) based on the initial investment outlay? Round youranswer to 1 decimal place (e.g., 13.571% = 13.6%).
3. The manager for a manufacturing company must recommend whether to construct a large plant, construct a small plant or do nothing. He estimates the long-run profits in $ as follows: State of Nature Alternative Good Average Poor Market($) Market ($) Market ($) Construct a 100,000 35,000 -60,000 large plant Construct a 75,000 25,000 -40,000 small plant Do nothing -5,000 0 0 Probability 25% 50% 25% Solve using: A. Expected Opportunity Loss B. Expected Value of Perfect Information

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

SEE MORE TEXTBOOKS