To complete this comprehensive exercise, use the Excel spreadsheet program. In this exercise you will be developing a payoff table and using decision making techniques to solve the problem described in the following scenario.
The owner of Paw Prints, Becky Arf, has recently decided that she wants to possibly consider producing a new type of dog collar for the summer season. She wants to know if the risk of producing an entirely new product will be financially worth it. Of course, Becky could always do nothing and leave her product line the same. Paw Prints is a company that produces dog collars for dog lovers in the Tulsa area. Recently the owner decided that it might be time to expand the product line with some new types of collars for the summer months. The owner of Paw Prints is a very creative person. She has made several different types of collars and, with the help of some MBA students, she has test marketed the different types of collars. The different types of collars are described below.

The owner of Paw Prints would like to know what she should do about her ideas.
To complete the comprehensive exercise, solve the problem using Excel. Additionally, in your workbook respond to Parts A and Part B (listed below). NAME the workbook with your completed work using your last name in the file name--use: LASTNAME_Mod3_Comp_Exercise_l. Submit the Excel workbook in BlackBoard. Provide the answers to the following questions. Part A: Using all the decision making under uncertainty techniques (Maximax, Maximin, Equally Likely, Hurwicz (with an alpha=.45), and Minimax Regret) that you learned about in Chapter 8, provide an answer for each technique.
Part B: What would you do if you were Becky Arf? Describe why you would choose the option you said you would choose.
Techno Collar: A collar that also has a miniature radio attached to the collar. It also has other "trinkets" on the collar that disguise the radio. The radio can be controlled by an app on the owner's cell phone.

Misty Collar: A collar that also has a small "mister attached to the collar. The "mister" can shoot a spray of water whet activated by an app on the owner's cell phone.

Good Smell Collar: A collar that also has a small "mister attached to the collar. The "mister can shoot a spray of a typ of cologne when activated by an app on the owner's cell phone. The MBA students were able to come up with the following information. The Techno Collar: After test marketing the product, the MBA team thinks Paw Prints could sell 500 collars if the demand is high, 300 collars if there is moderate demand, and 50 collars if there is low demand. For this type of collar Paw Prints would have to purchase a new machine that costs $1,000. Each collar has a variable cost of $5. The team recommends a selling price of $18.

The Misty Collar: After test marketing the product, the MBA team thinks Paw Prints could sell 600 collars if the demanc is high, 400 collars if there is moderate demand, and 100 collars if there is low demand. For this type of collar Paw Print would have to purchase a new machine that costs $1,350. Each collar has a variable cost of $3.50. The team recommends a selling price of $15.

The Good Smell Collar: After test marketing the product, the MBA team thinks Paw Prints could sell 700 collars if the demand is high, 400 collars if there is moderate demand, and 50 collars if there is low demand. For this type of collar Paw Prints would have to purchase a new machine that costs $1,500. Each collar has a variable cost of $3. The team recommends a selling price of $23.

The owner of Paw Prints would like to know what she should do about her ideas.
To complete the comprehensive exercise, solve the problem using Excel. Additionally, in your workbook respond to Parts A and Part B (listed below). NAME the workbook with your completed work using your last name in the file name--use: LASTNAME_Mod3_Comp_Exercise_l. Submit the Excel workbook in BlackBoard. Provide the answers to the following questions. Part A: Using all the decision making under uncertainty techniques (Maximax, Maximin, Equally Likely, Hurwicz (with an alpha=.45), and Minimax Regret) that you learned about in Chapter 8, provide an answer for each technique.
Part B: What would you do if you were Becky Arf? Describe why you would choose the option you said you would choose.