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THIS IS QUANTITATIVE METHODS REFER FROM; T.K. LAU (2015). QUANTITATIVE BUSINESS,(3rd Ed.). FAJAR OXFORD. ISBN 13;9789834705107. AND T.K. LAU (2015). QUANTITATIVE BUSINESS ANALYSIS FOR UiTM,
THIS IS QUANTITATIVE METHODS REFER FROM; T.K. LAU (2015). QUANTITATIVE BUSINESS,(3rd Ed.). FAJAR OXFORD. ISBN 13;9789834705107. AND T.K. LAU (2015). QUANTITATIVE BUSINESS ANALYSIS FOR UiTM, (3rd Ed). FAJAR OXFORD. ISBN 13; 9789834705107. PLEASE REFER TO THIS BOOKS TO CALCULATE. PLEASE SHOW THE STEP.
Question 1 (25 marks) A computer shop decides to choose one among four different types of products to sell. The following table indicates the payoff (net profit in RM) of all the four types of products which the shop considers, together with the possible levels of demand in the market. Product Demand Probability LCD CPU Chip Graphics Card 0.30 Operating System 20,000 22,000 60,000 70,000 Light Moderate Heavy Boom 0.50 5,000 27,000 55,000 90,000 -6,000 20,000 48,000 106,000 Monitor 25,000 25,500 26,000 26,500 0.15 0.05 a) Using expected monetary value (EMV), determine the product that should be sold by this computer shop (9 marks) b) Calculate the expected value of perfect information (EVPI). (3 marks) c) Using Return-to-Risk ratio (RTRR), determine the product that should be sold by this computer shop. (13 marks) Question 1 (25 marks) A computer shop decides to choose one among four different types of products to sell. The following table indicates the payoff (net profit in RM) of all the four types of products which the shop considers, together with the possible levels of demand in the market. Product Demand Probability LCD CPU Chip Graphics Card 0.30 Operating System 20,000 22,000 60,000 70,000 Light Moderate Heavy Boom 0.50 5,000 27,000 55,000 90,000 -6,000 20,000 48,000 106,000 Monitor 25,000 25,500 26,000 26,500 0.15 0.05 a) Using expected monetary value (EMV), determine the product that should be sold by this computer shop (9 marks) b) Calculate the expected value of perfect information (EVPI). (3 marks) c) Using Return-to-Risk ratio (RTRR), determine the product that should be sold by this computer shop. (13 marks)Step by Step Solution
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