User Account

All Pages

Determination of chance probability payoffs

Assignment Help Other Subject
Reference no: EM131544449

A General Manger of Harley-Davidson has to decide on the size of a new facility.

The GM has narrowed the choices to two: large facility or small facility. The company has collected information on the payoffs.

It now has to decide which option is the best using probability analysis, the decision tree model, and expected monetary value.

Options:

Facility Demand Options Probability Actions Expected Payoffs
         
Large Low Demand 0.4 Do Nothing ($10)
  Low Demand 0.4 Reduce Prices $50
  High Demand 0.6   $70
         
Small Low Demand 0.4   $40
  High Demand 0.6 Do Nothing $40
  High Demand 0.6 Overtime $50
  High Demand 0.6 Expand $55

Determination of chance probability and respective payoffs:

Build Small:  
Low Demand 0.4($40)=$16
High Demand 0.6($55)=$33
   
Build Large:  
Low Demand 0.4($50)=$20
High Demand 0.6($70)=$42

Determination of Expected Value of each alternative

Determination of Expected Value of each alternative

Build Small: $16+$33=$49

Build Large: $20+$42=$62

Reference no: EM131544449

Questions Cloud

Conduct a forensic examination : You are hired by JLA Enterprise to conduct a Forensic Examination after a network intrusion occurs at their corporate office.
What would the cost of equity be if the debt-equity : What would the cost of equity be if the debt-equity ratio were 1? What would the cost of equity be if the debt-equity were 2?
Explain the purpose and importance of financial ratios : Explain the purpose and importance of financial ratios and financial analysis. What are the limitations of financial ratio analysis?
What are the advantage associated with your particular style : Achieving emotional balance is critically important in establishing and maintaining healthy interpersonal functioning. Which of the following emotional styles.
Determination of chance probability payoffs : The GM has narrowed the choices to two: large facility or small facility. The company has collected information on the payoffs.
Enterprise-level network security planning : If a similar incident did occur with enterprise-level network security planning and policies in place, how would the response have been different?
What are the six governmental functions listed in the budget : What are the six governmental functions listed in the budget? What are the major sources of Rhode Island's revenues?
Determine how performance will be validated : Students begin to strategize on how a change initiative is planned and the potential obstacles to the change's success.
Identify ideas and terms that can be traced back to freud : What life factors and sociocultural factors do you think led Freud to come to the conclusions that he did

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd