Reference no: EM131142834
Roger Davis wants to open an independent gasoline station. Roger must decide how large his station should be. The annual returns will depend upon both the size of his station and the demand for gasoline. After careful analysis, Roger developed the subsequent table.
Size of Station Good Market Fair Market Poor Market
$ (000) $ (000) $ (000) $ (000)
Small 50 20 -10
Medium 80 30 -20
Large 100 30 -40
Very Large 300 25 -160
a. Develop a decision table for this decision.
b. What is the Maximax decision?
c. What is the Maximin decision?
d. What is the Mini-max Regret decision?
e. Prepare a decision tree of this problem.
f. If the probabilities of the markets are good market, 30%; fair market, 50%; poor market, 20%, calculate the expected values and expected opportunities lost of each option, and make a recommendation.
|
Describe the functions of production planning and control
: Based on the knowledge you have gained through the readings in this module, answer the Module Review Questions listed below. These questions were chosen to enable you to classify the three categories of maintenance checks , describe the functions of ..
|
|
Economic-cultural and legal and political issues
: Global strategies have many issues to be concerned with such as economic, cultural, and legal & political issues. Legal and political issues vary per country. Economic factors involve currency exchange rate, inflation, and the diverse tax policies. W..
|
|
About how to avoid making the same errors in the future
: You have realized that a report your team authored, and which is now sitting on the desk of the CEO, contains several significant errors. What is the most effective way to deal with this situation? Discuss the errors directly with your teammates and ..
|
|
Major change in the project management methodology
: Could the lessons learned on success and failure during project debriefings cause a major change in the project management methodology?
|
|
Open an independent gasoline station
: Roger Davis wants to open an independent gasoline station. Roger must decide how large his station should be. The annual returns will depend upon both the size of his station and the demand for gasoline. After careful analysis, Roger developed the su..
|
|
Assignment is to clearly articulate the specific strategies
: The purpose of this assignment is to clearly articulate the specific strategies and methods that will be utilized to manage the organizational changes associated with implementing the stratigie of delivering mail faster in the USPS. SUCH AS GETTING T..
|
|
Expected monetary value as your decision criterion
: Jason is considering building a restaurant near the campus. One set of business plans he is considering involves inclusion of a bar for beer sales; the other plan would not provide for beer sales. Select the alternative for Julie, using the expected ..
|
|
We will address a common topic in aircraft maintenance
: In this discussion, we will address a common topic in aircraft maintenance: cannibalization. In your own definition, what is the purpose of parts robbing or cannibalization in aircraft maintenance? What are the pros and cons and cannibalization and d..
|
|
How can a seemingly valuable behavior
: In a paragraph How can a seemingly valuable behavior evolve in one species but not in another? For example, primates can vomit but rodents cannot. Mention genes and natural selection in your answer.
|