Quick Reference - DMUR: Xbar = weighted mean Sigma = standard deviation CoV = sigma/xbar Xbar Sigma CoV Nl. Dtn PICK HI LO LO , for Normal Dist. them pick HI . i.e. HI LO LO HI ** Make an OVERALL conclusion/decision. Give reasons.**

PRACTICE 3 & 4 DMUR only Hudson Realty is considering a boost in advertising in order to reduce a large inventory of unsold houses. The management plans to make its media decision using the following data on the expected success of newspaper versus pamphlet promotions. Each promotion strategy requires the same amount of capital: ALTERNATIVES: EVENTS: NET PROFITS: PROBABILITIE: a1: Newspaper e1 e2 e3 3000 6000 9000 .30 .50 .20 a2: Pamphlet e1 e2 e3 5000 7000 9000 .40 .40 .20 1. Compute Xbar and Sigma. Decide which should be chosen accordingly. 2. Calculate the coefficient of variation (COV) of each alternative, and determine which one should be chosen accordingly? 3. Use the Z-table, and show the likelihood that Alternativel as well as Alternative 2 will yield a net profit more than $8000. For each: Include a Summary Table -- DMUR: Results - ADJUST/COPY the tables as needed Xbar Sigma CoV Normal Dist. % A B Be Sure To Support Your Answers (Give Reasons!)