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:
A. The y-intercept of g(x) is less than the y-intercept of f(x).
Step-by-step explanation:
The x-intercept, or when x = 0, of f(x) is -4, the x-intercept of g(x) is -8, so g(x) are neither greater nor equal to f(x), this marks out C and D. The y-intercept, or when y = 0, is in this case f(x) or g(x). The y-intercept of f(x) is 16, the y-intercept of g(x) is 4, so the y-intercept of g(x) is not equal to the y-intercept of f(x), this marks out B. Now to check A, 4 < 16, so y-intercept of g(x) < y-intercept of f(x), the answer is A
