Question
Princely Prizes is considering 3 different models for its new suit. This will involve changes in capacity and thus different volumes will have different unit
Princely Prizes is considering 3 different models for its new suit. This will involve changes in capacity and thus different volumes will have different unit costs. They estimate that the average demand per week will range between 80 and 120. They choose 3 possible levels of weekly demand and calculate profits for each. a. Draw a decision tree. b. Calculate the EMV c. Select the best model Models Possible average weekly demand 80 (p = 0.4) 100 (p = 0.2) 120 (p = 0.4) Model William $ 10000 $ 15000 $ 14000 Model Harry $ 8000 $ 18000 $ 12000 Model Charles $ 6000 $ 16000 $ 2100
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