Question: help me to solve the incorrect blanks and empty box Problem 13-25 (Algorithmic) The Gorman Manufacturing Company must decide whether to manufacture a component part

help me to solve the incorrect blanks and emptyhelp me to solve the incorrect blanks and emptyhelp me to solve the incorrect blanks and empty box

Problem 13-25 (Algorithmic) The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): State of Nature Low Demand Medium Demand High Demand $ 52 Decision Alternative Manufacture, di -40 60 120 Purchase, d2 20 55 80 The state-of-nature probabilities are Psi) = 0.30, Pisz) = 0.30, and Pisz) = 0.40. a. Use a decision tree to recommend a decision. Recommended decision: Purchase component . Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand. Round your answer to two decimal places. Enter your answer in thousands of dollars. Yes EVPI = 5 15.75 X thousands c. A test market study of the potential demand for the product is expected to report either a favorable ( or unfavorable (U) condition. The relevant conditional probabilities are as follows: PFSI) = 0.70 PFS2) = 0.30 PFS3) = 0.70 PUS) 0.30 PLUS2) = 0.70 PLUS3) = 0.30 What is the probability that the market research report will be favorable? If required, round your answer to three decimal places. PCF) = d. What is Gorman's optimal decision strategy? Round your answer to two decimal places. Enter your answer in thousands of dollars. Decision strategy If F then d2 - If U then di- Chapter 13 Problems 1 eBook b. Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand. Round your answer to two decimal places. Enter your answer in thousands of dollars. Yes EVPI = 15.75 X thousands C. A test market study of the potential demand for the product is expected to report either a favorable (F) or unfavorable (U) condition. The relevant conditional probabilities are as follows: PFS) = 0.70 PFS2) = 0.30 PF53) = 0.70 PUSI) = 0.30 PLUS2) = 0.70 PU53) = 0.30 What is the probability that the market research report will be favorable? If required, round your answer to three decimal places. PF) = d. What Gorman's optimal decision strategy? Round your answer to two decimal places. Enter your answer in thousands of dollars. Decision strategy IF F then de If U then di- Expected value = $ thousands. e. What is the expected value of the market research information? Round your answer to two decimal places. Enter your answer in thousands of dollars. Expected value = $ thousands. What is the efficiency of the information? If required, round your answer to one decimal place. Efficiency 9.27 x %

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