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ONLY PART D&E 3) Today's electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phylis Wienberger, who is
ONLY PART D&E
3) Today's electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phylis Wienberger, who is responsible for advising the president of Today's Electronics on electronic manufacturing equipment, has developed the following table concerning a proposed facility: Large facility Medium-sized facility Small facility No facility Probabilities STRONG MARKET 430,000 300,000 200,000 0 0.15 PROFIT ($) FAIR MARKET 105,000 129,000 100,000 0 0.55 POOR MARKET -160,000 -100,000 -32,000 0 0.30 a) What kind of decision-making environment is this? (5 pts) b) What is the expected monetary value (EMV) decision? (10 pts) c) Develop an opportunity loss table. (10 pts) d) What is the expected opportunity loss (EOL) decision? (10 pts) e) What is the expected value of perfect information (EVPI)? (10 pts) 3) Today's electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phylis Wienberger, who is responsible for advising the president of Today's Electronics on electronic manufacturing equipment, has developed the following table concerning a proposed facility: Large facility Medium-sized facility Small facility No facility Probabilities STRONG MARKET 430,000 300,000 200,000 0 0.15 PROFIT ($) FAIR MARKET 105,000 129,000 100,000 0 0.55 POOR MARKET -160,000 -100,000 -32,000 0 0.30 a) What kind of decision-making environment is this? (5 pts) b) What is the expected monetary value (EMV) decision? (10 pts) c) Develop an opportunity loss table. (10 pts) d) What is the expected opportunity loss (EOL) decision? (10 pts) e) What is the expected value of perfect information (EVPI)? (10 pts)Step by Step Solution
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