Expected values-payoff tables-hotdogs

Assignment Help HR Management

Reference no: EM13817476

Problem: Expected Values (Payoff Tables) - HotDogs

You own the rights to sell hot dogs at the local ballpark, The weather network predicts the probability of rain at 60% for the next game coming up tomorrow. You have to decide today whether you will set upyour hot dog stand inside or outside. If you set up outside and it does not rain, you expect to sell 800 hotdogs, but if it rains you will only sell 200 hot dogs. If you set up inside and it does not rain you will sell300 hot dogs; if it rains, you will sell 700 hot dogs. Each hot dog generates a contribution margin of $2.00.

Required:

a. Where should you set up, inside or outside?

b. What is the most you would pay someone to predict (with 100% accuracy)tomorrow's weather?c. At what rain probability would you be indifferent between setting up insideor outside?

Reference no: EM13817476

Questions Cloud

Discusses how the arts engage the viewer or audience : Include one slide that discusses how the arts engage the viewer or audience. Include at least one slide that discusses the individual's and the community's role in supporting the arts.

Improve the effectiveness of the team environment : Value of a team environment: Is the company operating with a team structure? How effective is the team structure? How could the company improve the effectiveness of the team environment? If there is no team structure currently in place, how should..

Include list of pollutants : Include list of pollutants

Differences between horizontal and conglomerate mergers : Discuss the differences between horizontal, vertical and conglomerate mergers and how those differ from a joint venture.

Expected values-payoff tables-hotdogs : You own the rights to sell hot dogs at the local ballpark, The weather network predicts the probability of rain at 60% for the next game coming up tomorrow. You have to decide today whether you will set upyour hot dog stand inside or outside.

Selection process : Each stakeholder in the selection process - line managers, coworkers, and applicants - has distinctly different needs, desires, and goals for selection. Discuss whether each stakeholder's needs, desires, and goals for selection should be equally ..

Expected values-payoff tables : Your client, QTI Ltd., wants your advice on which of two alternatives he should choose. One alternativeis to sell an investment now for $10,000

The advantages and disadvantages of magnetic storage : the advantages and disadvantages of magnetic storage

Expected values-the elwood company : The Elwood Company is considering hiring several new employees to handle an overload from a newcontract. If the new people are not hired, there will be delays in contract work. The following payoff matrix has been prepared for analyzing whether n..

User Account

All Pages