Exam 20: Decision Making Online

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.5, then the expected monetary value (EMV )for A2 is

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, what is the best action using the maximax criterion?

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.5, then the EVPI for the payoff table is

Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses.Given 0.2, 0.4, and 0.4 are the probabilities for the sale of 100, 200, or 400 dozen roses, respectively, then the optimal EOL for buying roses is

In a local cellular phone area, company A accounts for 60% of the cellular phone market, while company B accounts for the remaining 40% of the market.Of the cellular calls made with company A, 1% of the calls will have some sort of interference, while 2% of the cellular calls with company B will have interference.If a cellular call is selected at random, the probability that it will not have interference is

The minimum expected opportunity loss is also equal to

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.2 and S2 is 0.8, then the expected opportunity loss (EOL)for A1 is

SCENARIO 20-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Scenario 20-6, what is the expected profit under certainty?

SCENARIO 20-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Scenario 20-6, what would be the expected profit if the student had perfect information on whether the exam will be easy or difficult?

Blossom's Flowers purchases roses for sale for Valentine's Day.The roses are purchased for $10 a dozen and are sold for $20 a dozen.Any roses not sold on Valentine's Day can be sold for $5 per dozen.The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses.The number of states of nature for the payoff table is

For a potential investment of $5,000, a portfolio has an EMV of $1,000 and a standard deviation of $100.The return to risk ratio is

SCENARIO 20-6 A student wanted to find out the optimal strategy to study for a Business Statistics exam with scores out of 100 possible points.He constructed the following payoff table based on the mean amount of time he needed to study every week for the course and the degree of difficulty of the exam.From the information that he gathered from students who had taken the course, he concluded that there was a 40% probability that the exam would be easy. -Referring to Scenario 20-6, the optimal strategy using the maximax criterion is to study 8 hours per week on average for the exam.

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.5, then the expected monetary value (EMV )for A1 is

SCENARIO 20-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3. -Referring to Scenario 20-5, what is the optimal action using maximin criterion?

SCENARIO 20-3 The following information is from 2 investment opportunities. -Referring to Scenario 20-3, which investment has the optimal coefficient of variation?

A company that manufactures designer jeans is contemplating whether to increase its advertising budget by $1 million for next year.If the expanded advertising campaign is successful, the company expects sales to increase by $1.6 million next year.If the advertising campaign fails, the company expects sales to increase by only $400,000 next year.If the advertising budget is not increased, the company expects sales to increase by $200,000.Identify the events in this decision-making problem.

SCENARIO 20-4 A stock portfolio has the following returns under the market conditions listed below. -Referring to Scenario 20-4, what is the return to risk ratio?

SCENARIO 20-5 The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events. Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3. -Referring to Scenario 20-5, what is the EOL for Action A?

SCENARIO 20-1 The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. where: -Referring to Scenario 20-1, if the probability of S1 is 0.4, then the probability of S2 is

In a local cellular phone area, company A accounts for 60% of the cellular phone market, while company B accounts for the remaining 40% of the market.Of the cellular calls made with company A, 1% of the calls will have some sort of interference, while 2% of the cellular calls with company B will have interference.If a cellular call is selected at random, the probability that it will have interference is