1. A tetrahedral die has its sides labelled A, B, C and D. What is the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. A tetrahedral die has its sides labelled A, B, C and D. What is the probability of getting 3 A's in 6 tosses of the die. [10] 2. You are a manager at a company and you need to decide whether to build a large manufacturing facility, a small manufacturing facility, or no facility at all. With a favorable market, you can expect to make R5 400 000 from the large facility or R3 600 000 from the smaller facility. If the market is unfavorable, however, it is estimated that you would lose R1 800 000 with a large facility, and she would lose only R1 200 000 with the small facility. Because of various expenses involved, you have decided to conduct a pilot study to make sure that the market for your product will be adequate. It is estimated that the pilot study will cost her $300 000. Furthermore, the pilot study can be either favorable or unfavorable. Estimates show that the probability of a favorable market given a favorable pilot study is 0.70. The probability of an unfavorable market given an unfavorable pilot study result is estimated to be 0.80. You feels that there is a 0.75 chance that the pilot study will be favorable. Of course, you could bypass the pilot study and simply make the decision as to whether to build a large plant, small plant, or no facility at all. Without doing any testing in a pilot study, you also estimate that the probability of a favorable market is 0.6. What do you recommend? Compute the EVSI. [20] 1. A tetrahedral die has its sides labelled A, B, C and D. What is the probability of getting 3 A's in 6 tosses of the die. [10] 2. You are a manager at a company and you need to decide whether to build a large manufacturing facility, a small manufacturing facility, or no facility at all. With a favorable market, you can expect to make R5 400 000 from the large facility or R3 600 000 from the smaller facility. If the market is unfavorable, however, it is estimated that you would lose R1 800 000 with a large facility, and she would lose only R1 200 000 with the small facility. Because of various expenses involved, you have decided to conduct a pilot study to make sure that the market for your product will be adequate. It is estimated that the pilot study will cost her $300 000. Furthermore, the pilot study can be either favorable or unfavorable. Estimates show that the probability of a favorable market given a favorable pilot study is 0.70. The probability of an unfavorable market given an unfavorable pilot study result is estimated to be 0.80. You feels that there is a 0.75 chance that the pilot study will be favorable. Of course, you could bypass the pilot study and simply make the decision as to whether to build a large plant, small plant, or no facility at all. Without doing any testing in a pilot study, you also estimate that the probability of a favorable market is 0.6. What do you recommend? Compute the EVSI. [20]
Expert Answer:
Posted Date:
Students also viewed these general management questions
-
QUESTION 04: A tire company makes tires that have a normal distribution with a mean of 70000 miles and a standard deviation of 2000 miles prior to needing replacement. Use R/Rcmdr to find the...
-
You believe that oil prices will be rising more than expected, and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their...
-
Portray in words what transforms you would have to make to your execution to some degree (a) to accomplish this and remark on the benefits and detriments of this thought.You are approached to compose...
-
Write a paper on the brothers karamazov, fyodor dostoyevsky creates a conversation between two brothers: the cynical ivan, and the devoutly religious and earnest alyosha. In their dialogues...
-
According to a survey published in the Financial Times, 56% of executives at Britain's top 500 companies are less willing than they had been five years ago to sacrifice their family lifestyle for...
-
The table below presents the statements of retained earnings for Dillsboro Corporation for three successive years. Certain numbers are missing. Required: Use your understanding of the relationship...
-
Which of the perspectives of a balanced scorecard were the focus of United's CEO?
-
Relevance of equipment costs. The Auto Wash Company has just today paid for and installed a special machine for polishing cars at one of its several outlets. It is the first day of the companys...
-
What are the li censing requirements and compliancerequirements and policies to prevent liability for bakery business in canada?
-
A national newspaper conducts a survey of US adults in which respondents who were simple random sampled we asked one question: "Which city was the original capital of the USA?" Of 1750 respondents,...
-
Find AT and A-1 and (A-1) and (AT)-1 for A = 93 and also A = A = | C
-
2. Identical particles are placed at the 50-cm and 80-cm marks on a meter stick of negligible mass. This rigid body is then mounted so as to rotate freely about a pivot at the 0-cm mark on the meter...
-
For the following single-input/single-output linear system find a state-variable model: a) One that has a phase-canonical-form state equation, and b) one that has a diagonal-form state equation. Y(s)...
-
The current price of one share of XYZ stock is 56.50. A long straddle (one long call and one long put) on the stock with a strike price of K and one year to expiration has a total cost of 12.00. The...
-
Solve: Answer: x + 5 < 2(x 2) + 5
-
have public financial mangement questions 11 A flexible budget shows profitability under different assumptions of production volume 2 a True b False 2 The annualized cost method is used to evaluate...
-
2.) Find the Laplace transform of f(t) 7e-St cos 2t +9 sinh2 2t. Use Laplace Table. %3D
-
Costco Wholesale Corporation is a membership company. Customers pay a yearly membership fee, which gives them the right to shop at Costco. When Costco receives the yearly fee from a customer, it...
-
The Stephens Company has the following notes receivable outstanding on December 31. In preparation for adjusting entries, the accounting clerk has calculated accrued interest as follows:...
-
What two basic kinds of stock may a corporation issue?
Study smarter with the SolutionInn App