avg\"... Iv.._n_:_4\\4 .4}. \"Hone-x... Score on last try: 0 of 1 pts. See Details for more. Next question You can retry this question below The following results were obtained in a decision problem with profit payoffs: If the efficiency of sample information is 25%. what is the maximum expected monetary value? Maximum EMV = 1960 x Question Help: 8 Message instructor Check Answer 'ex ques Ion You can retry this question below Kipling Equipment Inc. must decide to produce either a face mask or a face shield to alleviate the spread of a quickly evolving coronavirus. The face mask is disposable and developing it could potentially lead to a profit of $320,000 if competition is high or a profit of $495,000 if competition is low. The face shield, on the other hand, is reusable and has the potential of generating a fixed profit of $399,000 irrespective of high or low competition. The probability of high competition is 40% while that of low competition 60%. Part A a) What is the expected monetary value of the optimal decision? $ 425000 v I b} Based on expected monetary value, what should the Kipling do? - c) What is the upper bound on the amount Kipling should pay for additional information? $| 31600 v I I Part A a) What is the expected monetary value of the optimal decision? 3; 425000 I b} Based on expected monetary value. what should the Kipling do? _ c) What is the upper bound on the amount Kipling should pay for additional information? $ 31600 - Part B Kipling can pay for a market survey research to better assess future market conditions. There is a 0.65 chance that the survey will produce an encouraging report and a 0.35 chance that the report will be discouraging. Given an encouraging report, the probability of low competition is 0.4 while given a discouraging report, the probability of high competition is 0.24. Part B Kipling can pay for a market survey research to better assess future market conditions. There is a 0.65 chance that the survey will produce an encouraging report and a 0.35 chance that the report will be discouraging. Given an encouraging report, the probability of low competition is 0.4 while given a discouraging report, the probability of high competition is 0.24. a} lfthe market survey report is encouraging, what is the expected value of the optimal decision? $-- b) If the market survey report is discouraging, what is the expected value of the optimal decision? $ 300000 x c) What is the expected value with the sample information {EVwSl} by the market I a} If the market survey report is encouraging, what is the expected value of the optimal decision? $ 300000 \"'lll b} If the market survey report is discouraging, what is the expected value of the optimal decision? $ 300000 x c) What is the expected value with the sample information {E'v'wSl} by the market survey? $ 300000 x d} What is the expected value of the sample information [EVSD provided by the market survey? $ 26000 I $ 300000 x t c) What is the expected value with the sample information (EVwSl) by the market survey? $ 300000 x d] What is the expected value of the sample information [EVSD provided by the market survey? $ 26000 I e) If the market survey.r costs $4,300. what is the best course of action for Kipling? Use market survey; cost is less than EVPI v Ix f) What is the efciency of the sample information? Round % to 1 decimal place. 82.1 x Question 6 - Lakeshore Manufacturing must decide whether to set their production capacity next quarter to small, medium or large while hoping that a looming employee strike will not actually materialize. Their projected annual profits $('000} depend on the event of the strike as follows: $m- Part A 1. What is the best expected payoff and the corresponding decision using the Expected Monetary Value (EMV) approach? I Part A 1. What is the best expected payoff and the corresponding decision using the Expected Monetary Value (EMV) approach? $('000}:] 2. What is the expected value of perfect information (EVPI)? Part B Lakeshore can hire a labour researcher for a $13,900 to obtain further information on the possibility of a strike. The researcher's report will either be favourable or unfavourable. The probability estimates are: Probability of an unfavorable report 2 0.25 Probability of no strike given a favorable report 2 0.78 Part B Lakeshore can hire a labour researcher for a $13,900 to obtain further information on the possibility of a strike. The researcher's report will either be favourable or unfavourable. The probability estimates are: Probability of an unfavorable report 2 0.25 Probability of no strike given a favorable report 2 0.78 Probability of a strike given an unfavorable report 2 0.56 Report answers to the questions below [#1 to #4] in dollars (not in $000 as above). 1. lfthe researcher gives a favourable report, what is the expected value of the optimal decision? $:J 2. lfthe researcher gives an unfavourable report, what is the expected value of the optimal decision? /\\ 2. If the researcher gives an unfavourable report, what is the expected value of the optimal decision? $ U 3. What is the expected value with sample information (EVwSI) provided by the researcher? $ U 4. How much should Lakeshore pay the researcher. at most? $ U 5. Based on the EVSI, should Lakeshore pay $13,900 for the sample information? Select an answer v 6. What is the efficiency of the sample information? Round 96 to 1 decimal place. D Question Help: El Video El Message instructor . Question 7 The hiring process at Queensway Staffing Agency is great, but far from perfect. Good candidates are sometimes rejected and bad ones sometimes hired. Since the agency earns profits from hiring good candidates, they also incur losses when they hire a candidate that is fired within 6 months or when they fail to hire (reject) a good candidate. They used relative frequency to determine the probability of hiring a good candidate and presented their payoffs (in $'000) as follows: Good Bad Hire 14.75 -3.5 Reject -1.25 0 Probability 0.16 0.84 Note: Payoffs in the given table are in thousands of dollars ($'000). The expected values are required below in dollars. Round to the nearest cent where necessary. a) What is the expected value of the optimal decision for Queensway? +Note: Payoffs tn the given table are in thousands of dollars ($000). The expected vaiues are required below in daltars. Round to the nearest cent where necessary: a) What is the expected value of the optimal decision for Queensway? $:J Queensway has recently subscribed to a premium package at Finch, an online career site. This package provides lQueensvvay with access to candidates that are already rated on Finch. Candidates on Finch are rated F (Favourable) if they have been verified to be top performers. and rated U (Unfavaarable) if they have not performed well. The probability that a candidate is Good for Queensway given rated F on Finch is 0.32, while the probability that the candidate is Bad for Queensway given rated U on Finch is 0.78. Currently, 28% of the candidates on Finch are rated F. b} What is the expected value of the optimal decision for Queensway if a candidate is ratedF on Finch? rt: b} What is the expected value of the optimal decision for Queensway if a candidate is rated]: on Finch? $ U c) What is the expected value of the optimal decision for Queensway if a candidate is rated U on Finch? $ D d} Calculate the expected value with sample information (EV with SI] for this problem. $ E e) Calculate the expected value of sample information (EVSI) for this problem. $ U f] Finch has just announced that the premium subscription will be free (cost = $0} for Queensway. Based on your EVSI, should Queensway use the subscription? Seled an answer v c) What is the expected value of the optimal decision for Queensway if a candidate is rated U on Finch? d) Calculate the expected value with sample information (EV with SI) for this problem. e) Calculate the expected value of sample information (EVSI) for this problem. f) Finch has just announced that the premium subscription will be free (cost = $0) for Queensway. Based on your EVSI, should Queensway use the subscription? Select an answer Question Help: Message instructor Check AnswerPART A Humber Bakery needs to decide how many units of its new Rexdough (nicknamed Rex) bread to bake at the beginning of each day. Because the bakery prides itself as the maker of the freshest premium bread in town, units that are unsold by the end of the day are discarded and considered loss. Each Rexdough bread costs $1.18 to produce and sells for $3.92. Humber's objective is to maximize daily gross profit. The bakery's daily production system is set up as follows: Light Production (22,000 units) Moderate Production (35,000 units) Heavy Production (45,000 units) Humber Bakery is uncertain about the demand for Rex but believes that one of the following states of nature (outcomes) will occur: Low Demand (20,000 units) Medium Demand (30,000 units) High Demand (40,000 units) Note: The bakery cannot sell more than it produces. For example, if production level is moderate (35,000) and demand is low (20,000 ), the