Pay Off Tables

  9) stomach by remit for the myrtle air express aid| vigorous| weak| to the abundant bell| $960| -$490| give the sack| $670| $320| a) The polish to be made present is to choose the type of profit to provide. The circumstances event is the take aim of withdraw for the Myrtle send attend to. The progeny is the amount of every quarter profit that the company receives. there argon cardinal finish alternatives ( adequate price and discount function). There are two outcomes for the expectation event (strong invite and weak prerequisite). consequently 2 decision alternatives and 2 outcomes for chance events..! b) Opportunity termination or regret table | utmost withdraw| Low film| maximum regret| Full redevelopment| 0| 810| 810| send wadding service| 290| 0| 290| High demand discount service 960-670=$290 Low demand full service=320-(-490)=$810 From the preceding(prenominal) settle off table by optimistic border on the decision is the full price service From the pay off tables by conservative admittance the decision is discount service..!

And from the above fortune loss or regret table by minimax approach discount service is advised..!(the one with minimum regret) c) suppose of strong demand=0.7 prospect of weak demand=0.3 lodge value (full sevice)=0.7(960)+(0.3)(-490)=$525 thousands judge value(discount service)=0.7(670)+0.3(320)=$565 thousand forthwith from the pass judgment values the expected value is to a greater extent for discount service whence the optimal decision is give the sack service d) probability of strong demand=0.8 probability of weak demand=0.2 pass judgment value (full sevice)=0.8(960)+(0.2)(-490)=$670 thousands Expected value(discount...If you want to get a full essay, order it on our website: Orderessay

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