An wirine decided to offer direct service from Cry A to City Management must decide between a full price service using the company's new feet of fet arratand discount service singler capacity commuter planet is clear that the best choice depends on the market reaction to the service the airline offers. Management developed estimates of the contribution to profit for each type cervice based upon the possible levels of demand for service to the airlined strong and weak. The following table shows the estimated quarterly profits in thousands) Demand for Service Service Strong Week Full price 1950 -5500 Discount 5610 1330 () What is the decision to be made, what is the chance event, and what is the consecuence for this problem? The desion to be madei Select The chance event The consequence How many decision rates are there? How many times are there for the chance event b) nothing is known about them of the chance outcomes, where the ended on the conservative and regret Approaches The recommended in the operare. The recommended decising the conversach the theme decising the minima regret proach is the che les suppose that management of the beves that the probabil streng demand and there wa demand is 03. Use the war rechten decenter your answers thousands of dollars) EVE Them de service Some that the strong and the demand 02. What the woman in the reach(inter your thood) En thande KV () Suppose that the probability of strong demand is 0.11 and the probability of weak demand is 0.2. What is the optimal decision using the expected value approach? (Enter your answers in thousands of dolen.) ch 3 thousands Escount thousands The optimal decision is the seed service (e) Uphical sty analysis to determine the range of demand probabilities for which each of the decision tematives has the largest expected value (round your answer to four decimal the proof strong demand fails below Vishe best choice the service is the best choice. If the probability of strong demand is greater than the An wirine decided to offer direct service from Cry A to City Management must decide between a full price service using the company's new feet of fet arratand discount service singler capacity commuter planet is clear that the best choice depends on the market reaction to the service the airline offers. Management developed estimates of the contribution to profit for each type cervice based upon the possible levels of demand for service to the airlined strong and weak. The following table shows the estimated quarterly profits in thousands) Demand for Service Service Strong Week Full price 1950 -5500 Discount 5610 1330 () What is the decision to be made, what is the chance event, and what is the consecuence for this problem? The desion to be madei Select The chance event The consequence How many decision rates are there? How many times are there for the chance event b) nothing is known about them of the chance outcomes, where the ended on the conservative and regret Approaches The recommended in the operare. The recommended decising the conversach the theme decising the minima regret proach is the che les suppose that management of the beves that the probabil streng demand and there wa demand is 03. Use the war rechten decenter your answers thousands of dollars) EVE Them de service Some that the strong and the demand 02. What the woman in the reach(inter your thood) En thande KV () Suppose that the probability of strong demand is 0.11 and the probability of weak demand is 0.2. What is the optimal decision using the expected value approach? (Enter your answers in thousands of dolen.) ch 3 thousands Escount thousands The optimal decision is the seed service (e) Uphical sty analysis to determine the range of demand probabilities for which each of the decision tematives has the largest expected value (round your answer to four decimal the proof strong demand fails below Vishe best choice the service is the best choice. If the probability of strong demand is greater than the
