Question: subject name is operation research. please solve this asap Mr. Khairul, a manager of a company needs to decide whether to invest in a sports

subject name is operation research. please solve

subject name is operation research. please solve this asap

Mr. Khairul, a manager of a company needs to decide whether to invest in a sports centre a shopping mall area or in a guaranteed return investment portfolio. The following table the profit that could be gained from the combination of alternatives and future market conditions. Alternatives Sports Centre (SC) Shopping Mall (SM) Guaranteed Return (GR) Market Conditions Favorable (RM) Unfavorable (RM) 110,000 -60,000 80,000 -30,000 20,000 20,000 The probability of a favorable market is estimated to be 0.6. Mr. Khairul also has the choice of conducting a survey to gather additional information about the market conditions. The result of the survey could either be positive or negative. The conditional probabilities of the possible events are given below. P(positive survey result favorable market) = 0.7 P(positive survey result unfavorable market) = 0.2 a) Draw a decision tree to represent the above problem and calculate the expected monetary value (EMV) for each node. (17 marks) b) Calculate the maximum amount that Mr. Khairul willing to pay to get additional information

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!