Question: Please fix the wrong inputs Spreadsheet Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the

Please fix the wrong inputs
Spreadsheet Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Demand Volume Decision Low Medium High Basic model $90,000 $100,000 $160,000 Advanced model $45,000 $110,000 $220,000 Fill in the table below for maximum and minimum profit payoffs under each model. Round your answers to the nearest dollar. Maximum Minimum Decision alternative Basic model $ 160000 90000 Advanced model 220000 45000 Calculate the amounts foregone by not adopting the optimal course of action for each possible demand level. Determine the maximum opportunity cost for each model. Fill in the table below. If your answer is zero, enter "0". Round your answers to the nearest dollar. Opportunity Loss Matrix Decision alternative Future events Medium Low High Maximum Basic model X 0 $ 10000 $ 0 $ 160000 Advanced model $ x 175000 $ 0 $ 0 $ 120000 Given the uncertainty associated with the demand volume, and no other information to work with, what decision would you make? The aggressive strategy (maximax) is to choose the advanced model The conservative strategy (maximin) is to choose the basic model The opportunity loss strategy is to choose the advanced modelStep by Step Solution
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