Reference no: EM132075635
Oscar Weng is planning to raise funds to pay for a scouting trip by running a concession stand during tomorrow's high school soccer game. Oscar needs to decide whether to rent a large insulated thermos from the local rental store and sell cocoa at the game or to rent a large refrigerated container and sell lemonade.
Unfortunately, Oscar does not have the resources to rent both items. Sales depend on whether it is sunny or rainy during the game. If the weather is sunny, Oscar will make a profit of $60 from lemonade but only $20 from cocoa. If, however, it is rainy, Oscar will make a profit of $80 from cocoa but only break even if he brings lemonade. Based on the local newspaper's prediction, Oscar thinks there is a 60% chance of it being sunny tomorrow. Oscar's older brother Elmo, who has earned the Meteorology Badge, claims he can predict the weather more accurately than the newspaper. For only $4, he offers to study the weather and tell Oscar if there is a "good chance" or "bad chance" of it being sunny tomorrow. Assume that the following data are available about the accuracy of the brother's information:
The probability that he will say "good chance" is 0.7.
If he says "good chance," then there is a 0.83 probability that it will actually be sunny tomorrow.
If he says "good chance," then there is a 0.83 probability that it will actually be sunny tomorrow.
(a) Draw the complete decision tree for Oscar's problem and fold it back to help him decide what he should do.
(b) How much is his brother's information actually worth to Oscar?
Evaluate the fundamental reasons of given problem
: "Competitive Markets, Price, Quality, and Monopoly" Please respond to the following:From the e-Activity, analyze at least two (2) primary economic assumptions.
|
How much is the marketing professor information worth
: How much is the marketing professor's information worth? What is the efficiency of this information?
|
Describe and discuss the item you would select as the most
: Describe and discuss the item you would select as the most important to purchase right away, and share with your fellow students and professor.
|
Probabilities of heavy-moderate and light snowfall
: As per the current weather forecasts, the probabilities of heavy, moderate, and light snowfall this winter are 0.4, 0.3, and 0.3, respectively.
|
Accuracy of the brother information
: Assume that the following data are available about the accuracy of the brother's information:
|
Write a report on a special probation client and program
: Write a report on a special probation/parole client and programs that have been established to address this problem client.
|
Should you accept the wager
: Should you accept the wager? If so, should you use your hard or soft serve?
|
Case study on death and dying
: Case Study on Death and Dying - Compare a religion with Christianity. Compare Christianity to Buddhism - How would each religion interpret the nature of George
|
Probability that the process will succeed
: If the process does not succeed, the company will lose $825,000. Rob estimates that there is a 0.6 probability that the process will succeed.
|