1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tomtit [17]
3 years ago
13

The J.R. Ryland Computer Company is considering a plant expansion to enable the company to begin production of a new computer pr

oduct. The company’s president must determine whether to make the expansion a medium- or large-scale project. Demand for the new product is uncertain, which for planning purposes may be low demand, medium demand, or high demand. The probability estimates for demand are 0.20, 0.20, and 0.60, respectively. Letting x and y indicate the annual profit in thousands of dollars, the firm’s planners developed the following profit forecasts for the medium- and large-scale expansion projects.
Medium-Scale Large-Scale
Expansion Profit Expansion Profit
x f(x) y f(y)
Low 50 0.2 0 0.2
Demand Medium 150 0.5 100 0.5
High 200 0.3 300 0.3
​a. Compute the expected value for the profit associated with the two expansion alternatives.
Which decision is preferred for the objective of maximizing the expected profit?
b. Compute the variance for the profit associated with the two expansion alternatives.
Which decision is preferred for the objective of minimizing the risk or uncertainty?
Mathematics
1 answer:
Solnce55 [7]3 years ago
3 0

Answer:

Kindly check explanation

Step-by-step explanation:

Given the data:

Medium-Scale Large-Scale

Expansion Profit Expansion Profit

x f(x) y f(y)

Low 50 0.2 0 0.2

Demand Medium 150 0.5 100 0.5

High 200 0.3 300 0.3

a. Compute the expected value for the profit associated with the two expansion alternatives.

Which decision is preferred for the objective of maximizing the expected profit?

Expected value for medium scale expansion profit :

Expected value (E) = Σ(X) * f(x)

Σ[(50 * 0.2) + (150 * 0.5) + (200 * 0.3)]

= 145

Expected value for Large scale expansion profit :

Expected value (E) = Σ(X) * f(x)

Σ[(0 * 0.2) + (100 * 0.5) + (300 * 0.3)]

= 140

Medium scale expansion profit is preferred as it has the highest expected value.

b. Compute the variance for the profit associated with the two expansion alternatives.

Which decision is preferred for the objective of minimizing the risk or uncertainty?

Variance (V) = Σ(X - E)² * f(x):

Variance for medium scale expansion profit :

V = [((50-145)^2 * 0.2) + ((150-145)^2 * 0.5) + ((200-145)^2 * 0.3) = 2725

Variance for Large scale expansion profit :

V = [((0-140)^2 * 0.2) + ((100-140)^2 * 0.5) + ((300-140)^2 * 0.3) = 12400

Smaller variance is required to minimize risk, Hence, choose the medium scale expansion profit.

You might be interested in
Pre cacl pleaseeeee help. the options are in the attachments as well
ivanzaharov [21]

Answer:

The values of x so that y = \csc x have vertical asymptotes are -2\pi, -\pi, 0, \pi, 2\pi.

Step-by-step explanation:

The function cosecant is the reciprocal of the function sine and vertical asymptotes are located at values of x so that function cosecant becomes undefined, that is, when function sine is zero, whose periodicity is \pi. Then, the  vertical asymptotes associated with function cosecant are located in the values of x of the form:

x = 0\pm \pi\cdot i, \forall \,i\in \mathbb{N}_{O}

In other words, the values of x so that y = \csc x have vertical asymptotes are -2\pi, -\pi, 0, \pi, 2\pi.

3 0
3 years ago
Find the volume of the sphere.
DiKsa [7]
That’s the same thing I’m on
8 0
3 years ago
Please help me i need help quick
RoseWind [281]

Answer:

<u>x = -2</u>

<u>y = -6</u>

Step-by-step explanation:

<u>Equating the equations</u> :

  • x - 4 = 4x + 2
  • 3x = -6
  • x = -2

  • y = -2 - 4
  • y = -6
6 0
2 years ago
Read 2 more answers
Solve The following m/2+6=2m-6
rewona [7]

m =8

hope it helps

pls follow me thank you

7 0
2 years ago
Read 2 more answers
1. Find the LCM of 12 and 9<br><br>NEED HELP ASAP​
kondaur [170]

Answer:

its 36

Step-by-step explanation:

7 0
3 years ago
Other questions:
  • Just having lil problem with this math problem if anyone can help me please solving. thanks
    7·1 answer
  • 17.2 in expanded form
    7·2 answers
  • The perimeter of a certain rectangle is 16 times the width. The length is 12 cm more than the width. Find the length and width o
    13·1 answer
  • Which expression represents the number 13,809 written in expanded form?
    10·1 answer
  • What is an written expression for 20+5×9
    11·1 answer
  • For each container of tea, McKenzie uses 16 tea bags and 3 cups of sugar. If McKenzie uses 64 tea bags, how many cups of sugar w
    8·1 answer
  • Which is equivalent to the expression below?
    6·1 answer
  • Help pls pls with right answer
    5·1 answer
  • Hello, someone please help me with this question.
    6·1 answer
  • A pair of shoes is on sale for 15% off. With this discount, customers will save $9 if they buy the shoes. Part AIn this situatio
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!