A manufacturing company is faced with the problems of choosing four products to manufacture.The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities foreach type are given below :ProductsProbabilitiesGoodSatisfactoryРorA0.600.200.20B0.750.150.10C0.600.250.15D0.500.200.30The estimated profit/loss under different states of demand may be taken as under.ProductsProfit or Lo:GoodSatisfactoryРoorA40,00010,0001,100B40,00020,000|-7,000C50,00015,000|-8,000D40,00018,00015,000Prepare expected value table and advice the company about the choice of the product.

Given Products Probabilities Good satisfactory poor A 0.60 0.20 0.20 B 0.75…

A manufacturing company is faced with the problems of choosing four products to manufacture. The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities for each type are given below : Products Probabilities Good Satisfactory Рoor A 0.60 0.20 0.20 B 0.75 0.15 0.10 0.60 0.25 0.15 D 0.50 0.20 0.30 The estimated profit/loss under different states of demand may be taken as under. Products Profit or Loss Good Satisfactory Рoor A 40,000 10,000 1,100 40,000 20,000 |-7,000 C 50,000 15,000 |-8,000 D 40,000 18,000 15,000 Prepare expected value table and advice the company about the choice of the product.

A manufacturing company is faced with the problems of choosing four products to manufacture. The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities for each type are given below : Products Probabilities Good Satisfactory Рoor A 0.60 0.20 0.20 B 0.75 0.15 0.10 0.60 0.25 0.15 D 0.50 0.20 0.30 The estimated profit/loss under different states of demand may be taken as under. Products Profit or Loss Good Satisfactory Рoor A 40,000 10,000 1,100 40,000 20,000 |-7,000 C 50,000 15,000 |-8,000 D 40,000 18,000 15,000 Prepare expected value table and advice the company about the choice of the product.

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter12: Probability

Section12.CR: Chapter 12 Review

Problem 10CR

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