Question: please answer this question on a computer not on paper! follow directions please without saying step by step since its a hw assignment! will

please answer this question on a computer not on paper! follow directions please without saying " step by step" since its a hw assignment! will give thumbs up please answer this question on a computer not on
please answer this question on a computer not on
Do both DMUU & DMUR : MUST include: Work, BOTH Tables as Answer Format, and Overall Conclusions with Supporting Reasons! PRACTICES Consider the following decision matrix presenting net profit/loss estimates regarding an investment project: DEMAND LOW MEDIUM HIGH 550 Small 300 400 EQUIPMENT USED Medium Large 100 300 500 300 600 900 1. Considering that the probabilities applicable to demand are not known, show the decision recommendations from the points of view of perfect optimism; perfect pessimism; optimism at a = .7: conservatism (equal likelihood), and minimization regrets. Do you see a pattern? If so, which equipment would you choose? Explain. 2. Consider now that the probabilities for demand being low, medium and high have been calculated as .3, 2, and .5, respectively. By using a decision tree, find the expected Small 300 400 550 EQUIPMENT USED Medium Large 100 -300 500 300 600 900 1. Considering that the probabilities applicable to demand are not known, show the decision recommendations from the points of view of perfect optimism; perfect pessimism; optimism at a - .7; conservatism (equal likelihood): and minimization regrets. Do you see a pattern? If so, which equipment would you choose? Explain. 2. Consider now that the probabilities for demand being low, medium and high have been calculated as 3, 2, and .5, respectively. By using a decision tree, find the expected value, the standard deviation, and the coefficient of variation for each size of equipment. Which size of equipment would you recommend on the basis of each of the three coefficients of variation that you calculated? 3. Referring to the Z-Table, calculate the probability that each alternative (each different equipment) will tum out at least a $150 profit? What is the likelihood that each alternative will produce a profit of between S200 and $300

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!