Reference no: EM132953969
Question: A supermarket chain purchases large quantities of white bread for sale during a week. The stores purchase the bread for $1.25 per loaf and sell it for $2.39 per loaf. Any loaves not sold by the end of the week can be sold to a local thrift shop for $1.00. Based on past demand, the probability of various levels of demand is as follows:
|
Demand (Loaves)
|
Probability
|
|
6,000
|
0.10
|
|
8,000
|
0.50
|
|
10,000
|
0.30
|
|
12,000
|
0.10
|
a. Construct a payoff table, indicating the events and alternative courses of action.
b. Construct a decision tree.
c. Compute the expected monetary value (EMV) for purchasing 6,000, 8,000, 10,000, and 12,000 loaves.
d. Compute the expected opportunity loss (EOL) for purchasing 6,000, 8,000, 10,000, and 12,000 loaves.
e. Explain the meaning of the expected value of perfect informa- tion (EVPI) in this problem.
f. Based on the results of (c) or (d), how many loaves would you purchase? Why?
g. Compute the coefficient of variation for each purchase level.
h. Compute the return-to-risk ratio (RTRR) for each purchase level.
i. Based on (g) and (h), what action would you choose? Why?
j. Compare the results of (f) and (i) and explain any differences.
k. Suppose that new information changes the probabilities associ- ated with the demand level. Use the following probabilities to repeat (c) through (j):
|
Demand (Loaves)
|
Probability
|
|
6,000
|
0.30
|
|
8,000
|
0.40
|
|
10,000
|
0.20
|
|
12,000
|
0.10
|
|
Compute the expected opportunity loss
: Explain the meaning of the expected value of perfect informa- tion (EVPI) in this problem and Compute the return-to-risk ratio (RTRR) for offering
|
|
Find the gravitational energy
: Some children go tobogganing on an icy hill. They start from rest at the top of the hill 12.0 m high. The toboggan and children have a combined mass of 94 kg. I
|
|
What is the order of the brightness of the lightbulbs
: What is the order of the brightness of the lightbulbs? Is it affected by the circuit being run in series vs parallel? Can you explain this mathematically?
|
|
What is the car power
: A 1550 kg car accelerates from rest to 26.8 m/s in 2.30 s. What is the car's power? Make sure to include proper analysis, symbols, units, and significant digits
|
|
Compute the expected monetary value
: Compute the expected monetary value (EMV) for purchasing 6,000, 8,000, 10,000, and 12,000 loaves and Explain the meaning of the expected value of perfect
|
|
Calculate the magnitude of force exerted by the string
: 0.50 kg laboratory dynamics cart with an initial velocity of 3.0 m/s [right] accelerates for 2.0 s at 1.2 m/s" [right] when pulled by a string.
|
|
Violate the law of conservation of energy
: A ball is dropped vertically from a height of 1.5 m; it bounces back to a height of 1.3 m. Does this violate the law of conservation of energy? Explain.
|
|
Calculate moment of inertia
: Given the mass M=976.5 g and radius R=12.7 cm of the turntable platter, use the equation above to calculate its moment of inertia.
|
|
What is temperature coefficient
: A wire has resistance 100 Ohm at 20ooo-1? C and 200 Ohm at 100C. What is its temperature coefficient in (C)
|