Reference no: EM13284003
Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting her own independent gasoline station. Susan%u2019s problem is to decide how large her station should be. The annual returns will depend on both the size of her station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table:
Size of market Profit in Good Market Profit in Fair Market Profit in Poor Market
Small 50,000 20,000 -10,000
Medium 80,000 30,000 -20,000
Large 100,000 30,000 -40,000
Very Large 300,000 25,000 -160,000
For example, if Susan constructs a small station and the market is good, she will realize a profit of $50,000.
a) What is the maximax decision?
b) What is the maximin decision?
c) What is the equally likely decision?
d) What is the Hurwicz (criterion of realism) decision with a = 0.8?
e) What is the minimax regret decision?
|
What is the cost of preferred stock
: What is the cost of preferred stock that pays a 12% dividend and sells at par if the firm's tax rate is 35%? Hint: assume preferred stock price is $1,000 and dividend is $120.
|
|
What is plasti-techs stock price per share
: If there are 10,000 common stock shares outstanding, what is Plasti-tech's stock price per share?
|
|
At what angle would this highway be directed
: A highway is to be built between two towns, one of which lies 30.0 km south and 83.0 km west of the other. at what angle would this highway be directed
|
|
What will the winners prize be in 2040
: In 1985, the winner of a competition was paid $110. In 2006, the winners prize was $70,000. What will the winners prize be in 2040 if the prize continues at the same rate?
|
|
What is the maximin decision
: The annual returns will depend on both the size of her station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table.
|
|
Estimate the period of the oscillation
: A spring has an unstretched length of 12cm. When an 80 g ball is hung from it, the length increases by 4.0 cm. What is the period of the oscillation
|
|
What is plasti-tech stock price per share
: If there are 10,000 common stock shares outstanding, what is Plasti-tech's stock price per share?
|
|
From what height above the top of the window was pot dropped
: a falling flower pot passes a 1.5 m tall window of an apartment building in a time of .16 s. from what height above the top of the window was the pot dropped
|
|
How far away from the dart board did the dart thrower stand
: A dart is thrown horizontally toward the bull's-eye, point P on the (non-standard size) dart board, How far away from the dart board did the dart thrower stand
|