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 Poor A 0.60 0.20 0.20 B 0.75 0.15 0.10 C 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 Poor A 40,000 10,000 1,100 40,000 20,000 |-7,000 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 Poor A 0.60 0.20 0.20 B 0.75 0.15 0.10 C 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 Poor A 40,000 10,000 1,100 40,000 20,000 |-7,000 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
Section12.3: Conditional Probability; Independent Events; Bayes' Theorem
Problem 42E
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