John Corner, chief engineer of Offshore Chemicals, Inc., have to decide whether to build a new processing facility based on an experimental technology. If the new facility works, the company will realize a net profit of $20 million. If the new facility fails, the company will lose $10 million. Benjamin’s best guess is that there is a 40 percent chance that the new facility will work What decision should Benjamin Moses make?
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John Corner, chief engineer of Offshore Chemicals, Inc., have to decide whether to build a new processing facility based on an experimental technology. If the new facility works, the company will realize a net profit of $20 million. If the new facility fails, the company will lose $10 million. Benjamin’s best guess is that there is a 40 percent chance that the new facility will work
What decision should Benjamin Moses make?
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- Wired & Plugged specializes in manufacturing modern electronic components. It also builds equipment that produces the components. The marketing and production directors advised the president about a proposed manufacturing facility in the form of a payoff table as shown. Construct an Opportunity Loss (Regret) table. What decision should be made under Maximax Regret?Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives. Future Demand Alternatives Low Moderate High Small Facility 14 12 13 Medium Facility -1 17 23 Large Facility -5 11 29 Alternatives Worst Regrets Small Facility ? Medium Facility ? Large Facility ? a) The worst regrets for alternative Small Facility is b) The worst regrets for alternative Medium Facility is c) The worst regrets for alternative Large Facility is d) The best course of action or decision by using Minimax Regret is to select ( ) facilityCarlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle’s alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may expand, remain stable, or contract. Carlisle’s marketing department estimates the probabilities of these market outcomes to be 0.25, 0.35, and 0.40, respectively. The file P09_31.xlsx contains Carlisle’s payoffs and costs for the various combinations of decisions and outcomes. a. Use PrecisionTree to identify the strategy that maximizes this tire manufacturer’s expected profit. b. Perform a sensitivity analysis on the optimal decision, letting each of the monetary inputs vary one at a time plus or minus 10% from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution? Tire plant decisions Decision\outcome…
- Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives. Alternatives Low Future Demand Moderate High Small Facility 52 42 43 Medium Facility 50 49 49 Large Facility -15 38 Alternatives Small Facility Medium Facility Large Facility Worst Regrets ? ? ? a) The worst regrets for alternative Small Facility is Blank 1 b) The worst regrets for alternative Medium Facility is Blank 2 c) The worst regrets for alternative Large Facility is Blank 3 d) The best course of action or decision by using Minimax Regret is to select Blank 4 facility 51Carlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle’s alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may expand, remain stable, or contract. Carlisle’s marketing department estimates the probabilities of these market outcomes to be 0.25, 0.35, and 0.40, respectively. The file P06_31.xlsx (picture of given excel file is attached) contains Carlisle’s payoffs and costs for the various combinations of decisions and outcomes. Identify the strategy that maximizes this tire manufacturer’s expected profit. Perform a sensitivity analysis on the optimal decision, letting each of the monetary inputs vary one at a time plus or minus 10% from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution?Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives. Alternatives Low Future Demand Moderate Small Facility 49 48 Medium Facility 46 47 Large Facility -12 112 47 Alternatives Small Facility Medium Facility Large Facility Worst Regrets ? ? ? a) The worst regrets for alternative Small Facility is Blank 1 b) The worst regrets for alternative Medium Facility is Blank 2 c) The worst regrets for alternative Large Facility is Blank 3 d) The best course of action or decision by using Minimax Regret is to select Blank 4 facility 47 ཆེ་ཆེ་བེ་རྡོ High
- (Provide complete decision table solution) which decision alternative has a minimum payoff value from the maximum regrets? a. construct a facility in talisay b. both construct a facility in talisay and subcontracting ohlala move c. hire additional drivers in mandaue d. sobcontracting ohlala move what realism approach decision alternative has maximum payoff? a. construct a facility in talisay b. both hire additional drivers in mandaue and construct a facility in talisay c. hire additional drivers in mandaue d. sobcontracting ohlala move which equally likely decision alternative has the best payoff value? a. construct a facility in talisay b. hire additional drivvers in mandaue c. either subcontracting ohlala move or construct a facility in talisay d. subcontracting ohlala move.There are two outcomes: a good market and a bad market. , The decision table is presented below. There are four alternatives: do nothing, build a small plant, build a medium-size plant, and build a large plant. PAYOFFS Outcomes Alternatives Good market Bad market Do nothing $0 $0 Small Plant $30,000 ($10,000) Medium Plant $100,000 ($15,000) Large Plant $200,000 ($30,000) So you are to workout the Maximax, the Maximin, the Equally likely the Hurwicz based on a .11 probability and the regret using minimax. In words give the answers to these questions: What are your answers under: Answers Best payoff option for maximax is Common Stock Best payoff option for maximin is doing nothing Best payoff option for equally likely is Common Stock Best payoff option for Hurwicz is doing nothing Put a Bold Box around the word Outcomes Keep the Bad Market amounts in Red Ink Make the type style Ariel and Size 12 in BlackSuppose you have a choice of three projects to choose from. Here the expectedprofits from these projects under the following economic scenarios:Project Poor/Fair Moderate/Stable Strong/Booming A -200 $400 $700B -700 600 1200C 100 500 900 Suppose no probabilities are given for the different economic scenarios in the above table. A) What would be your decision under the Optimistic approach? Explain. B) What would be your decision under the Conservative approach? Explain. C) Create an opportunity loss table. Determine what the decision should be using the Minimax Regret approach. Explain.
- Carlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle's alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may improve, remain stable, or contract. The table below presents the payoff matrix. Improve Remain stable Contract Construct a new plant $400,000 -$100,000 -$200,000 Expand existing plant $250,000 -$50,000 -$75,000 Do nothing $50,000 $0 -$30,000 Considered the problem statement and data table above. Under the Minimax Regret decision rule, the optimal decision is [Select] Y.The corresponding value for the optimal decision is [Select]The following payoff table provides profits based on various possible decision alternatives adn various levels of demand at Robert Klassan's print shop: decision low high alt 1 $10,000 $36,000 alt 2 $6,000 $38,000 alt 3 -$2500 $52,000 The probability of low demand is 0.40 whereas the probability of high demand is 0.60. a) The alternative that provides Robert the greatest expected monetary value is _________ The EMV for this decision is $_______ b) The expected value with perfect information (EVwPI)= $______ c) The expected value of perfect information (EVPI) for Robert= $________Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table: Alternatives Favorable Market Unfavorable Market Build large plant $400,000 −$300,000 Build small plant $120,000 −$15,000 Don't Build $0 $0 Market Probability 0.40 0.60 a) The correct decision tree for Dwayne is shown in Figure ____ (all payoffs are in thousands). b) To maximize the return, Dwayne's decision should be to ______ . c) For Dwayne, the expected value of perfect information (EVPI) = $___________ (enter your answer as a whole num