Decision tree analysis, Advanced Statistics

Assignment Help:
Ask questioThe finance manager of ‘Softy’ baby soap manufacturing company being successful in
the first two years of the company’s operations is considering setting up another plant to
meet the growing demand for the product. If the demand is high the new project is
expected to earn Rs.5 million per annum and if demand is low it is expected to earn
Rs.2 million per annum. The probability that demand is high is 0.55.
The firm can set up either a large plant costing Rs.10 millions or a small plant costing
Rs.5 million. Both the plants will take one year to build and as such no profits are
earned in year 1. Both the plants have an estimated life of four years after which their
value is considered to be negligible.
In case of high demand, the firm can expand the small plant in year 2 at an additional
cost of Rs.6 million. Alternatively, in case of low demand, the firm can reduce the large
plant in year 2 and recover Rs.3 million. Expansion or reduction of plant size will take a
whole year, so that in such case no profit will be earned in year 2.n #Minimum 100 words accepted#

Related Discussions:- Decision tree analysis

Determinant, A value related with the square matrix which represents sums a...

A value related with the square matrix which represents sums and products of its elements. For instance, if the matrix is   then the determinant of A (conventionally written as

Intercropping experiments, Intercropping experiments are the experiments i...

Intercropping experiments are the experiments including growing two or more crops at same time on the same patch of land. The crops are not required to be planted nor harvested at

Analysis of variance, Thomas Economic Forecasting, Inc. and Harmon Economet...

Thomas Economic Forecasting, Inc. and Harmon Econometrics have the same mean error in forecasting the stock market over the last ten years. However, the standard deviation for Thom

Codominance, Codominance : The relationship between genotype at the locus a...

Codominance : The relationship between genotype at the locus and a phenotype to which it in?uences. If an individuals with heterozygote (such as, AB) genotype is phenotypically dif

Tree, Tree is the term from the branch of the mathematics which known as t...

Tree is the term from the branch of the mathematics which known as the graph theory, used to describe any set of the straight-line segments joining the pairs of points in some pro

Determine the probablity, Dr. Stallter has been teaching basic statistics f...

Dr. Stallter has been teaching basic statistics for many years. She knows that 80% of the students will complete the assigned problems. She has also determined that among those who

Differences total spot, The graphical process most frequently used in the a...

The graphical process most frequently used in the analysis of data from a two-by-two crossover design. For each of the subject the difference between the response variable values o

Excel, Software which started out as the spreadsheet targeting at manipulat...

Software which started out as the spreadsheet targeting at manipulating the tables of number for financial analysis, which has now developed into a more flexible package for workin

Case series, Case series : It is the series of reports on the condition of ...

Case series : It is the series of reports on the condition of the individual patients made by treating physician. Such reports might be helpful and informative for the rare disease

Explain Genstat, Genstat: The basic purpose piece of statistical software ...

Genstat: The basic purpose piece of statistical software for the management and the analysis of data. The package incorporates the wide variety of data handling events and a wi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd