The decision table for the decision. Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

Question

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Answer 1

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Southland Corporation's decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long-run demand as low, medium, or high. The following payoff table shows the projected profit in millions of dollars: Plant Size Small Large Long-Run Demand Low Medium 350 250 400 400 High 400 700 (a) What is the decision to be made, and what is the chance event for Southland's problem?

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Cogswell Cogs, is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $7.2 million. If demand for new products is low, the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $10 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $14 million. In either case, the probability of demand being high is .45, and the probability of it being low is .55. Not constructing a new factory would result in no additional revenue being…

Answer 2

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Answer 3

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Answer 4

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Answer 5

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

Answer 6

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

Answer 7

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

Answer 8

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

Answer 9

b.

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

Answer 10

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

Answer 11

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

Answer 12

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Answer 13

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Answer 14

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

Answer 15

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. A - Prob. 1DQ Ch. A - Prob. 2DQ Ch. A - Prob. 3DQ Ch. A - Prob. 4DQ Ch. A - Prob. 5DQ Ch. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQ Ch. A - Prob. 8DQ Ch. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ

Concept explainers

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Want to see the full answer?

Chapter A Solutions

Concept explainers

To determine: Maximax decision Introduction: Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

To determine: Equally likely decision Introduction Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Want to see the full answer?

Chapter A Solutions

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternatives.

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.