[solved]-Problem 1 Expected Value Determine Whether Would Decide Based Profitability Go Product Clu Q39716870

Problem 1: Expected Value Determine whether you would decide, based on profitability, to go with the product cluster of Product A, Product B, and Product Cor the product cluster of Product X, Product Y, and Product z Product A is expecting revenues of $800,000 and costs of $200,000. Product B is expecting revenues of $600,000 and costs of $250,000. Product C is expecting revenues of $700,000 and costs of $300,000. The probability of achieving these revenues and costs are 28% for Product A and 35% for Product C? Product X is expecting revenues of $800,000 and costs of $200,000. Product Y is expecting revenues of $600,000 and costs of $350,000. Product Z is expecting revenues of $900,000 and costs of $495,000. The probability of achieving these revenues and costs are 35% for Product X and 31% for Product Z? Your goal is to maximize profits. Which product cluster would you choose? For any credit, you must show all your work. robabilities, bu would make a choice. You Problem 2: Uncertainty Uncertainty is when the outcomes are not certain and you are unable to estimate probah you use your psychological orientation to make decision. If you are optimistic you wou “maximax” choice. If you are generally a pessimist, you would make a “maximin” cho also can make a choice that minimizes your maximum “regret” or make a minimax choi based on the three Use the following information and determine what would be your three choices based on psychological orientations (maximax, maximin, and minimax). Show all work R3 R2 RI Payoff Table Response: Strategy: Si S2 S3 2365 2021 2398 2306 2256 1945 2218 2109 2199 1502 2283 2391 S4 ANSWER: R 2 | Maximax: Optimistic Response: Ri Strategy: Si 2365 S2 20 S3 0309 S4 20 ANSWER: Maximin: Pessimistic Response: R1 Strategy: R2 R3 S1 2199 1502 S2 2018 2109 R2 Minimax: Regret Matrix ANSWER: Response: RI R3 Strategy 12398-2365. 3 50 – 122360 271-21 102 12398-221-377 2258145312397-15 2393-1398502256-22:32 27-0293 slog 2348-220M 2156 -2 10/ 2397-234120 Response: Strategy RI so-soz the maxtonni 1922 299 -108- 147 1. We use probabilities assigned as a percent chance of success to navigate: 2. We use Maximax and Maximin to evaluate decisions when there is: 3. If a manager is pessimistic, they use which analysis? 4. If a manager wants to minimize regret they would use which decision criteria? 5. If a manager is optimistic they would use which decision criteria? Show transcribed image text Problem 1: Expected Value Determine whether you would decide, based on profitability, to go with the product cluster of Product A, Product B, and Product Cor the product cluster of Product X, Product Y, and Product z Product A is expecting revenues of $800,000 and costs of $200,000. Product B is expecting revenues of $600,000 and costs of $250,000. Product C is expecting revenues of $700,000 and costs of $300,000. The probability of achieving these revenues and costs are 28% for Product A and 35% for Product C? Product X is expecting revenues of $800,000 and costs of $200,000. Product Y is expecting revenues of $600,000 and costs of $350,000. Product Z is expecting revenues of $900,000 and costs of $495,000. The probability of achieving these revenues and costs are 35% for Product X and 31% for Product Z? Your goal is to maximize profits. Which product cluster would you choose? For any credit, you must show all your work.
robabilities, bu would make a choice. You Problem 2: Uncertainty Uncertainty is when the outcomes are not certain and you are unable to estimate probah you use your psychological orientation to make decision. If you are optimistic you wou “maximax” choice. If you are generally a pessimist, you would make a “maximin” cho also can make a choice that minimizes your maximum “regret” or make a minimax choi based on the three Use the following information and determine what would be your three choices based on psychological orientations (maximax, maximin, and minimax). Show all work R3 R2 RI Payoff Table Response: Strategy: Si S2 S3 2365 2021 2398 2306 2256 1945 2218 2109 2199 1502 2283 2391 S4 ANSWER: R 2 | Maximax: Optimistic Response: Ri Strategy: Si 2365 S2 20 S3 0309 S4 20 ANSWER: Maximin: Pessimistic Response: R1 Strategy: R2 R3 S1 2199 1502 S2 2018 2109
R2 Minimax: Regret Matrix ANSWER: Response: RI R3 Strategy 12398-2365. 3 50 – 122360 271-21 102 12398-221-377 2258145312397-15 2393-1398502256-22:32 27-0293 slog 2348-220M 2156 -2 10/ 2397-234120 Response: Strategy RI so-soz the maxtonni 1922 299 -108- 147 1. We use probabilities assigned as a percent chance of success to navigate: 2. We use Maximax and Maximin to evaluate decisions when there is: 3. If a manager is pessimistic, they use which analysis? 4. If a manager wants to minimize regret they would use which decision criteria? 5. If a manager is optimistic they would use which decision criteria?

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Answer to Problem 1: Expected Value Determine whether you would decide, based on profitability, to go with the product cluster of … . . .