The reccommended decision using expected value approach

Assignment Help Operation Management

Reference no: EM131124776

A Las Vegas Roulette wheel has 38 different numerical values. If an individual bets on one number and wins they payoff is 35:1

a. show a payoff table for a $10 bet on one number for decision alternatives of bet and do not bet.

b. What is the reccommended decision using the expected value approach

c. Do the Las Vegas casinos want risk taking or or risk avoiding customers? Explain?

d. What range of utility values would a decision maker have to assign to a $0 payoff in order to have expected utility njustify a decision to palce the $10 bet?

Please show work

Reference no: EM131124776

Questions Cloud

Are there long-term or short-term careers for the employees : Our focus in this course has been the franchisee and various benefits to owning a franchise. We have looked at the difficulty of not only finding good employees but keeping them. As an employee what are your goals when taking a job in a franchise suc..

The pre departure phase of foreign work assignments : The pre departure phase of foreign work assignments

Analyze the decision tree to determine whether the company : Hemmingway, Inc., is considering a $7 million research and development (R&D) project. Profit projections appear promising, but Hemmingway's president is concerned because the probability that the R&D project will be successful is only 0.50. Analyze t..

Units with standard deviation : Daily demand for a product is 95 units with a standard deviation of 13 units. The review period is 8 days, and lead time is 4 days. At the time of review there are 80 units in stock. If 90 percent service probability is desired, how many units should..

The reccommended decision using expected value approach : A Las Vegas Roulette wheel has 38 different numerical values. If an individual bets on one number and wins they payoff is 35:1. What is the reccommended decision using the expected value approach. Do the Las Vegas casinos want risk taking or or risk ..

The everyday usage of the idea of organization design : Which organizational design discussed in this course do you see most often discussed in articles appearing in daily newspapers and other news sources? What seems to be the everyday usage of the idea of organization design?

Linear programming model of this production-mix situation : The Electrocomp Corporation manufactures two electrical products: air conditioner and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and ..

Would he violate any securities laws : John owns 1000 shares of ABC company stock. John learns that the ABC Company, whose stock is now trading at $1000 share, is about to file for bankruptcy. John learned the information because he inadvertently opened an envelope which had been mistaken..

Believe older erotic dancers are not appealing to customers : You own and operate a gay gentlemen’s club in Illinois. You have well over 35 full time employees. You only hire straight men under age 30 as erotic dancers to 1) avoid patronizing between the workers and customers and 2) because you believe older er..

User Account

All Pages