Decision Making Under Uncertainty In the Table, we apply the concept of Maximax choice, the Maxmin choice, and the equally likely choice. Given the data/information in the Table, compute for the row average. After that, determine the amount of the ROW AVERAGE that would be adopted to be best alternative. The best alternative is the alternative with the highest value of the row average. In this case, which option is more attractive? Values in PhP State of Nature Favorable Unfavorable Maximum Market Minimum in Row Alternatives Market in Row Row | Average Project A 80,000.00 - 20,000.00 | 80,000.00 20,000.00 Project B | 40,000.00 - 25,000.00 | 40,000.00 25,000.00 Project C 30,000.00 | 10,000.00 30,000.00 10,000.00 Project D (Do Nothing)
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- Company is an automobile replacement parts dealer in large metropolitan community. B company is preparing its sales forecasts for the coming year. Data regarding both B company’s and industry sales of replacement parts as well as both the used and new B company sales in the community for the last 10 years have been accumulated. If B company wants to determine if there is a historical trend in the growth of its sales as well as the growth of industry sales of replacement parts, the company would employ A. Simulation techniques B. Queuing theory C. Statistical sampling D. Time series analysisWhat is the best decision alternative under Maximax criterion? (Provide complete decision table solution) DIHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small- time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. States of Nature Decision Alternatives Failure Low Moderate High Hire additional Drivers in Mandaue -450,000 -250,000 250,000 500,000 Construct a facility in Talisay -800,000 -400,000 300,000 700,000 Subcontracting Ohlala Move -100,000 -10,000 150,000 300,000 Hire Additional Drivers in Mandaue Construct a Facility in Talisay O Subcontracting Ohlala Move Both…Columbus grocery store faces demand for freshly squeezed pomegranate juice. The daily demand for freshly squeezed juice ranges from 10 to 20 gallons. The grocery store offers the juice in a special 1 gallon bottle. Each gallon costs $8 to make and is sold for $15. Any juice that is not sold by the end of the day can all be sold to a local food processor for $5. Compute the decision rule ratio using the marginal analysis (rounding it to two decimal places). 0.53 O0.47 O 0.50 O 0.30 O0.70
- Use the below formula to calculate the CLV for the following: A manager of a cable company wants to determine if it is strategic to acquire the Brett family, by estimating their household-level CLV. The manager estimates that it will cost the company $80 (A) to get the Bretts’ to switch, and the Bretts’ will generate $150 profit each year (M), with a $30 annual marketing cost to retain them (C). The estimated retention rate (r) is 65%, and the current discount rate is 5%.(d) i) CLV= ii) Based on your calculation, are the Brett’s profitable to the cable company?The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 This textbook costs the bookstore $70 and sells for $95 Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund o $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 65 70 75 80 85 Stock 0.1 0.25 0.2 0.1 0.35 65 ? ? ? ? ?The University of Miami bookstore stocks textbooks in preparation for sales each semester. It normally relies on departmental forecasts and preregistration records to determine how many copies of a text are needed. Preregistration shows 85 operations management students enrolled, but bookstore manager Vaidy Jayaraman has second thoughts, based on his intuition and some historical evidence. Vaidy believes that the distribution of sales may range from 65 to 85 units, according to the following probability model: Demand 65 70 75 80 85 Probability 0.15 0.20 0.30 0.20 0.15 This textbook costs the bookstore $65 and sells for $90. Any unsold copies can be returned to the publisher, less a restocking fee and shipping, for a net refund of $30. a) Based on the given information, Vaidy's conditional profits table for the bookstore is: Demand 65 70 75 80 85 Stock p = 0.15 p = 0.20 p = 0.30 p = 0.20 p = 0.15 65