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Meega airlines decided to offer direct service from Akron to Clearwater beach, Florida. Management must decide between full-price service using a company’s new fleet of jet aircraft and a discount-service using smaller capacity commuter planes. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service on Clearwater beach: high, moderate, and low. The following table shows the estimated quarterly profits (in thousands of dollars): Service Demand for service High Medium Low Full price 900 760 –430 Discount 710 650 350 The probabilities for the demand is P(High) = 0.3, P(Medium) = 0.5, and P(Low) = 0.2, respectively. a. What is the optimal decision strategy if perfect information were available? b. What is the expected value for the decision strategy developed in part a? c. Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? d. What is the expected value of perfect information?
Identify major potential legal issues as they pertain to employees in the U.S. Examine 4-5 legal issues that differ based on employee location (comparing matters in both Europe and Asia to those in the U.S.).
The Capital structure of Matejcek and Kelloggs' Woodshop and Tea Room Emporium is provided below. Assume that US treasury bills (risk free option) have a return rate of 5% that the current market return rate is 15%, and that the company's Beta (\beta..
Which of the following error measures indicates the size (magnitude) of the error?
What key operations decisions helped Crocs develop a competitive advantage over other shoe manufacturers. Briefly describe Crocs' supply chain. What innovative ideas did Crocs integrate into its supply chain model to reduce costs and improve effici..
The Donut Shoppe is considering buying a new donut machine for a total of $110,110. The Donut Shoppe estimates that this new machine will increase its cash inflow each year, after expenses, by $22,000. This machine will have a useful life of 10 years..
You are a new member of the operations team of a midsize manufacturing company with 500 employees. The decision makers at your manufacturing plant are struggling to meet production performance levels. After evaluating the company's performance lev..
Explain how it can impact a healthcare setting (e.g., clinic, surgery center, hospital, nursing home, etc.). List some of the benefits of using the selected payment model. List some of the drawbacks of using the selected payment model
Determine the total cost (purchase price + delivery cost) to makea Blaster unit using thesewoofer and tweeter components and each delivery combination option?
Identify 2 or 3 examples of process improvement opportunities in your chosen organization's industry. Identify 2 or 3 process improvement opportunities in your selected organization.
The war on terrorism has caused the U.S. to change its long-stated foreign and defense policies. September 11, 2001 was the day that changed these policies, perhaps forever. To what extent does the War on Terrorism represent a break with previous Uni..
The line managers in the production department have heard a lot of good things about value chain management. They heard that you have done considerable research on this topic. They have come to your office today to discuss value chain management wi..
For each situation, select the most appropriate individual tactic that will enhance your chances of getting a desired outcome. Write the appropriate letter in the blank before each item. a. rational persuasion d. ingratiation g. coalition b. inspirat..
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