Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi Need some help with this question but has to be in excel. I need this in excel or the work showing ABC can sell

Hi Need some help with this question but has to be in excel. I need this in excel or the work showing

ABC can sell surfboards or body boards. the revenues of selling and producing surfboards or body boards depend on how the waves are during this season. If the waves, on average, are bigger than 5Ft, producing and selling surfboards will results in sales of $4,000,000, while producing and selling body boards will lead to sales to $1,500,000. If the waves are smaller than 5 FT, surfboards will result in sales of $1,000,000 and body boards will result in sales of $3,500,000. According to the latest forecast for the 3- month period, there is a 60% chance of getting waves bigger than 5 Ft on average.

Create a payoff table in excel and use it to find the following. Need to see all workings and what is the best payoff decision and what to choose.

A. Maximax

B. Maximin

c. Equal likehood

D. Expected value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Analysis For Management

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna

11th Edition

9780132997621, 132149117, 132997622, 978-0132149112

Students also viewed these Mathematics questions