Renovativing in the historic district where there is a lot

Assignment Help Basic Statistics

Reference no: EM13642738

Jan finished culinary school and wants to start her own pastry business. She has a few options, and believes that a sensitivity analysis would help her to make the best business decision. She is considering three options, and is confident that there is a strong demand (.6) because there is only one other bakery in the town.

Building in the newer area of town where there has been recent growth. Strong demand payoff $7 million, weak demand payoff $2 million.
Renting an existing bakery location that was leasesed by a company that recently went out of business. Strong demand payoff $9 million, weak demand $4 Million.
Renovativing in the historic district where there is a lot of tourism and foot traffic. Strong demand payoff $12 million, weak demand $7 million.

Using three decisions, complete the equations and label each component of the equation. Use page 114 and 115 as a model, as well as the equation below to get you started. In addition, construct a decision table to go with the equations (see page 110). In five to seven sentences, explain what decision you believe Jan should make, and why.

Where = Decision 1: building in new side of town

Where = Decision 2: rent an existing bakery

Where = Decision 3: renovate in historic district

Reference no: EM13642738

Questions Cloud

Detemine the probability mass function for x let the random : detemine the probability mass function for x. let the random variable x be equally to assume any of the values 18 14 or

Carter motor company claims that its new sedan the libra : identify the indicated type of errora carter motor company claims that its new sedan the libra will average better than

A company manufacturing electronic components for home : a company manufacturing electronic components for home entertainment systems buys electrical connectors from three

A sample of 4 different calculators is randomly selected : a sample of 4 different calculators is randomly selected from a group containing 48 that are defective and 20 that have

Renovativing in the historic district where there is a lot : jan finished culinary school and wants to start her own pastry business. she has a few options and believes that a

Consider a perfectly normally distributed population and : consider a perfectly normally distributed population and answer the followinga. what is the skewness value?b. what type

Worldwide it is understood that iq scores follow a normal : worldwide it is understood that iq scores follow a normal distribution. it is assumed that the middle 95 of the

The middle 68 of the data falls between what two values : in the united states the average weight of an adult male is 172 pounds with a standard deviation of 29 pounds. assuming

If the process is properly calibrated based on the : a company produces packets of soap powder labeled giant size 33 oz. past testing of the production process has allowed

User Account

All Pages