Question: answer question 4 4. Consider only low and high demand. Under what probabilities of high demand would a small facility be best? 2. Enrollment advisers

answer question 4

4. Consider only low and high demand. Under what probabilities of high demand would a small facility be best? 2. Enrollment advisers and budget analysts at the university estimate the following probabilities of occurrence for each of the enrollment levels: Low 0.2, Moderate 0.2. Using this additional information regarding the scenario in problem #1, determine the expected monetary values of each alternative. Small Medium Large Low Moderate High 10 13 12 8 15 6 7 18 EMV, small: 11.8 EMV, medium: 13.4 EMV, large: 13.4 3. Express the information above in the form of a decision tree. Decision Demand Level and Likelihood Expected profits Low=10 Moderate 13 2 2 2.6 Small 2 7.2 High-12 Low=8 Moderate=14 .6 1.6 2.8 Medium 2 9.0 2 High=15 Low=6 Moderate-7 1.2 Large .6 2 10.8 2 .6

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