Question: cions - As the operations manager, you need to decide on two design options for the new keyboard for personal desktop computers. The forecasted sale

cions - As the operations manager, you need to
cions - As the operations manager, you need to decide on two design options for the new keyboard for personal desktop computers. The forecasted sale is 100,000 keyboards over the life cycle. Design option A has a 0.8 probability of yielding 64 good units per 100 and the remaining probability of yielding 59 good units per 100. Design Option A keyboard design costs $1,500,000. Design option B has a 0.1 probability of yielding 64 good units per 100 and the remaining probability of yielding 59 good keyboards per 100. Design option B costs $1,250,000 The production cost is fixed at $75 per keyboard. For keyboards that are good will sell for $150. For keyboards that are bad, they are destroyed, and no costs are associated with the destruction. a) Draw a decision tree that shows the nodes, values, probabilities, and dollar figures for each branch (8 marks) b) Which design option should be selected and why? (2 marks) 1M

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