What is the most that should be paid for this forecast

Assignment Help Operation Management

Reference no: EM13251821

Nick has plans to open some pizza restaurants, but he is not sure how many to open. He has prepared a payoff table to help analyze the situation.

Nick believes there is a 40 percent chance that the market will be good, a 30 percent chance that it will be fair, and a 30 percent chance that it will be poor. A market research firm will analyze market conditions and will provide a perfect forecast (they provide a money back guarantee). What is the most that should be paid for this forecast?

a. $123,000

b. $132,000

c. $ 53,000

d. $176,000

e. $ 44,000

Reference no: EM13251821

Questions Cloud

Find the maximum energy stored in the spring : Blocks A (mass 2.00kg ) and B (mass 10.50kg ) move on a frictionless, horizontal surface. Find the maximum energy stored in the spring bumpers and the velocity of each block at that time

Analogical arguments : Determine whether the following arguments are inductive generalizations or analogical arguments. Identify the sample, target, property in question, or, for analogical arguments, identify the analogues (the sample and target, also called the terms of ..

Define the overall stability of the dna molecule : Hydrogen bonding does not make a significantly large contribution to the overall stability of the DNA molecule. Explain

Develop a seasonally adjusted forecasting model for number : Develop a seasonally adjusted forecasting model for number of patients during each part o fthe week for week 11.

What is the most that should be paid for this forecast : A market research firm will analyze market conditions and will provide a perfect forecast (they provide a money back guarantee). What is the most that should be paid for this forecast?

Determine the maximum percent uncertainty : Determine the maximum percent uncertainty it will produce in this experiment if we did not align the apparatus to minimize its effects

Define groups directly attached to the ring by dragging them : Do not delete any of the atoms or bonds in the ring or directly attached to the ring with the Erase button, and do not move atoms or groups directly attached to the ring by dragging them.

Derive term including source match error correction formula : Derive the two-term including source match error correction formula. Note: For all of these derivations, you should identify your standards {match, short, open} but DO NOT assume anything about their values.

What is the difference between favorable and unfavorable : What is the difference between favorable and unfavorable variances and how do you calculate them?

User Account

All Pages