What are the two types of decision making?

Question 3

Question A local real estate investor in Kingston is considering three investments: a motel, a restaurant, or a theatre. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourist; Profits from the theatre will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment:   Real Estate Investor Payoff Table   Payoffs are Profits   States of Nature (Gasoline Avaliability) Decision Alternatives Shortage Stable Supply Surplus Motel $8,000 $15,000 $22,000 Restaurant $2,000 $8000 $6,000 Theater $6,000 $6,000 $5,000     If the probability of a shortage of gasoline is 25%, the probability of a stable supply of gasoline is 45% and the probability of a surplus of gasoline is 30%. Using the EMV, What option should the real estate investor choose and what is that optimal expected value? What is the most the real…

DECISION TREE TUTORIAL QUESTIONS QUESTION 1 An events management company is trying to decide whether or not to advertise an outdoor concert. The sale of tickets is dependent on the weather. If the weather is poor it is expected that 5 000 tickets will be sold without advertising. There is a 70% chance that the weather will be poor. If the weather is good it is expected that 10 000 tickets will be sold without advertising. There is a 30% chance that the weather will be good. If the concert is advertised and the weather is poor, there is a 60% chance that the advertising will stimulate further demand and ticket sales will increase to 7 000. If the weather is good there is a 25% chance the advertising will stimulate demand and ticket sales will increase to 13 000. The profit expected, before deducting the cost of advertising, at different levels of ticket sales are as follows: The cost of advertising the concert will be N$15 000. Number of tickets sold Profit N$ (20 000) (5 000) 35 000 55…

Question 2

Q.7. What are the various types of product related decisions?

Ch. 12 Q9

Question 8 In Monopolistic Competition, sellers try to develop differentiated offers for different customer segments. O True O False Moving to another question will save this response. TOSHIBA A F7 NAA F8 44

Q1. Dallas Mavericks’ owner Mark Cuban proved his business intelligence once again with the acquisition of star player Kristaps Porzingis. To benefit from this blockbuster trade even further, Cuban plans to sell one-time-only special edition Porzingis jerseys at a price of $380 each during the first month of the season (i.e., during October 2019 only). The production cost for each of these jerseys would be $100 thanks to their golden details, and any unsold jersey during October will be sold for $80 during November 2019. Knowing the fan base for years, Cuban estimates demand for these special edition jerseys to follow a normal distribution with a mean of 10,000 units and a standard deviation of 2,000. partc.  Cuban also plans to sell these special edition jerseys in his vacation resort. Knowing that people are wealthier in the resort, he sets a price of $500 for each jersey (although production cost stays the same). This time however, he cannot sell any unsold jerseys outside the…

Question 3 Use the Ansoff matrix to discuss the strategic choices relevant to Pepsico’s competitive rivalry   The Case PepsiCo was the world’s largest snack and beverage company, with 2013 net revenues of approximately $66.4 billion. The company’s portfolio of businesses in 2014 included Frito-Lay salty snacks, Quaker Chewy granola bars, Pepsi soft-drink products, Tropicana orange juice, Lipton Brisk tea, Gatorade, Propel, SoBe, Quaker Oatmeal, Cap ’n Crunch, Aquafina, Rice-A-Roni, Aunt Jemima pancake mix, and many other regularly consumed products. The company viewed the line-up as highly complementary since most of its products could be consumed together. For example, Tropicana orange juice might be consumed during breakfast with Quaker Oatmeal, and Doritos and a Mountain Dew might be part of someone’s lunch. In 2014, PepsiCo’s business line-up included 22 $1 billion global brands. The company’s top managers were focused on sustaining the impressive performance through strategies…