PLEASE HELP ME WITH THIS PROBLEM. PLEASE SHOW ALL STEPS ON HOW TO GET TO THE ANSWER. SHOW ALL WORK, I DON'T UNDERSTAND IT. THANK YOU!!
Show all steps of how to get each number and percent. If you use excel, then please show the breakdown of the formula used. THANK YOU!!
Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, lan developed the following table: $21,000 Size of First Station Small Medium Large Very Large States of Nature Good Market Fair Market $60,000 $70,000 $32.000 $95,000 $32.500 $280,000 $24.000 Poor Market - $12,000 - $18,000 -$42,000 -$150.000 For example, if lan constructs a small station and the market is good, he will realize a profit of $60,000. This exercise contains only parts b, c, and d. b) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be very Large The value of the return under this decision is $ 280000 c) Using the decision making under uncertainty with the criterion Maximin The appropriate decision will be Small Very Large Large Medium Click to select your answers) and Iswer Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): Alternatives Large Stock Average Stock Small Stock States of Nature (demand) Big Average Small $18,000 $12,000 - $2,000 $12,000 $9,000 $6,500 $9,000 $7,500 $4,000 The probabilities associated with the states of nature are 0.20 for a big demand, 0.55 for an average demand, and 0.25 for a small demand. a) The alternative that provides Andrew Thomas the greatest expected monetary value (EMV) is Large Stock The EMV of this decision is $ 9700 (enter your answer as a whole number). (enter your answer as a b) The expected value of perfect information (EVPI) for Andrew Thomas = $ whole number). The following payoff table provides profits based on various possible decision alternatives and various levels of demand at Robert Klassan's print shop: Decision Alternative 1 Alternative 2 Alternative 3 Demand Low High $12,000 $24,000 $5,000 $38,000 - $2,500 $50,000 The probability of low demand is 0.45, whereas the probability of high demand is 0.55. a) The alternative that provides Robert the greatest expected monetary value (EMV) is Alternative 3 The EMV for this decision is $ 26375 (enter your answer as a whole number). b) The expected value with perfect information (EVwPI) = $ (enter your answer as a whole number). Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): Alternatives Large Inventory Average Inventory Small Inventory States of Nature (size of crowd) Large Average Small $24,000 $8,000 - $2,000 $15,000 $12,000 $4,000 $8,000 $4,000 $5,000 Probabilities associated with the states of nature are 0.30 for a large crowd, 0.45 for an average crowd, and 0.25 for a small crowd. a) The alternative that provides Deborah the greatest expected monetary value (EMV) is Average Inventory . The EMV for this decision is $ 10900 (enter your answer as a whole number). (enter your answer as a whole b) For Deborah, the expected value of perfect information (EVPI) = $ number)
