Consider a firm handling concessions for a sporting event. The firm’s manager needs to know whether to stock up with coffee or col
a and is formulating policies for specific weather predictions. A local agreement restricts the firm to selling only one type of beverage. The firm estimates a $1500 profit selling cola if the weather is cold and a $5000 profit selling cola if the weather is warm. The firm also estimates a $4000 profit selling coffee if it is cold and a $1000 profit selling coffee if the weather is warm. The weather forecast says that there is a 30% of a cold front; otherwise, the weather will be warm. Build a decision tree to assist with the decision. What should the firm handling concessions do?
1 answer:
Answer: Cola is more profitable over Coffee
Step-by-step explanation:
E(cola) = 0.3 * 1500 + 0.7 * 5000
E(cola) = 450 + 3500
E(cola) = 3950
E(coffee) = 0.3 * 4000 + 0.7 * 1000
E(coffee) = 1200 + 700
E(coffee) = 1900
From the decision tree which is attached, and the calculations above, it would be advised that the firm should focus on Cola, since it has a higher expected revenue of $3950, compared to the expected revenue of $1900 for coffee.
See the attached image for the decision tree
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Answer:
Step-by-step explanation:
Start by finding the LCM of the coefficients of each polynomial:
Next, to find the least common multiple of each of the following terms, we need to take the absolute minimum we can of each term (,
, and
). The largest term of
is
in the first polynomial, so we'll take exactly that for our
term in the LCM, absolutely nothing more. Similarly, the largest term of
in any of the three polynomials is
(also in the first polynomial) and the largest
term in any of the three polynomials is
in the second polynomial. Thus, the LCM of all our polynomials is: