Help me solve all the questions Interest Rate (in RM1,000,000s)StableDeclineProjectOffice parkOffice buildingIncrease0.51.74.51.51.92.5Warehouse1.71.41.0Mall0.72.43.6Condominiums3.21.50.6a) Determine the best project to be develop using Hurwicz criterion with a = 0.35.b) The Place-Star has hired an economist to assign a probability to each directioninterest rates may take over the next five years. The economist has determined thatthere is a 0.50 probability that interest rates will decline, a 0.40 probability that rateswill remain stable, and a 0.10 probability that rates will increase.Construct a decision tree and recommend the best project to be develop usingExpected Value (EV).i.ii.Calculate the Expected value of Perfect Information (EVPI).An economist charges RM20,000 for more information about which state ofnature (interest rate) is likely to occur. Based on your answer in (ii), would Place-Star spend the money for this information? Why?ii.|이디-|이3 Place-Star, a real estate development firm, is considering several alternativedevelopment projects. These include building and leasing an office park, purchasing aparcel of land and building, an office building to rent, buying and leasing a warehouse,building a strip mall, and building and selling condominiums. The financial success ofthese projects depends on interest rate movement in the next 5 years. The variousdevelopment projects and their 5-year financial return (in RM1,000,000s) given thatinterest rate will decline, remain stable, or increase, are shown in the following payofftable:1

Answered: Interest Rate (in RM1,000,000s) Stable…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
The Aggies will host Tech in this year's homecoming football game. Based on advance ticket sales, the athletic department has forecast hot dog sales as shown in the following table: TT Sales Quantity Probability 1,000 2,000 3,000 4,000 5,000 0.10 0.20 0.30 0.20 0.20 The school buys premium hot dogs for $1.60 and sells them during the game at $2.80 each. Hot dogs left over after the game will be sold for $0.60 each to the Aggie student cafeteria to be used in making hotdog casserole. Use a payoff matrix to determine the number of hot dogs to buy for the game. hot dogs. (Enter your response as an integer.)
Problem 4-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. State of Nature Decision Alternative Strong Demand S₁ Weak Demand S₂ Small complex, di 6 Medium complex, dz Large complex, d3 8 14 20 3 -8 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.78 that demand will be strong (S₁) and a corresponding probability of 0.22 that demand will be weak (S₂). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.1 million and as long as the payoff for the weak demand…
Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to usethese funds to start a student accommodation business. In order to start this business, Lorrainewould need approximately R1 million, funds are needed for building the students accommodationapartments and to register with various regulatory bodies. She has to source additional funding inorder to realise this dream. In the business plan, Lorraine has outlined the following:• Accommodation will be offered ONLY to students in Cape Town, Johannesburg,Mpumalanga and Polokwane.• ONLY females will be approved to reside in these houses, between the age of 18 - 35.• Marketing of the business will be done on community Radio stations only at the fourmentioned cities.• It is going to be a family business, Friends and relatives are in support of the idea but arenot able to support the business financially There are three types of Market coverage. Explain the type of market coverageapplicable to Lorraine’s…
Problem 13-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. State of Nature Decision Alternative Strong Demand S1 Weak Demand S2 Small complex, d1 7 5 Medium complex, d2 14 6 Large complex, d3 20 -8 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.8 that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.5 million and as long as the payoff…
Problem 13-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. State of Nature Decision Alternative Strong Demand S1 Weak Demand S2 Small complex, d1 8 6 Medium complex, d2 14 5 Large complex, d3 19 -8 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.8 that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.25 million and as long as the payoff…
1. Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars.State of NatureDecision Alternative Strong Demand S1 Weak Demand S2Small complex, d1 8 7Medium complex, d2 15 3Large complex, d3 20 -82. Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.83 that demand will be strong (S1) and a corresponding probability of 0.17 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.25 million and as long as the payoff for the weak demand was greater than or equal…
The Irontown Independent School District wants to sell a parcel of unimproved land that it does not need. Its three best offers are as follows: Organization/Company Offer Proposed Use The State Department of Public Safety (DPS) $5.7 million New state highway patrol barracks The Lexington Presbyterian Church $5.6 million Start a church school Newberry Inc. $5.5 million Open a car dealership As the financial adviser for the school district, which offer would you prefer?
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. *What 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. *a.) Which decision alternative has a minimum payoff value from the maximum regrets?b.) Which realism approach decision alternative has maximum payoff? c.) Which equally likely decision alternative has the best payoff value?
Al Khoud Airlines is planning to introduce a new flight service between Khasab in Musandam Governorate and Salalah in Dhofar Governorate. The following budgeted costing and pricing data are available: Ticket Price A OMR88 Ticket Price B OMR188 Variable Cost for Price A OMR54 Variable Cost for Price B OMR58 Targeted Sold Seats for Price A: Targeted Sold Seats for Price B: Business Business - Tourism 27,400 Other Fixed Costs 80 100 Tourism 160 40 Fuel Costs (Fixed) 138,000 The Company assumes that: Tourism travelers would normally start their travel during one week, spend at least one weekend at their destination and return the following week or thereafter; Business travelers usually start and complete their travel within the same work week. They do not stay over weekends. Suggest at least TWO measures for each dimension in assessing AI Khoud's performance using the Balance Score Card approach.

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