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notka56 [123]
3 years ago
11

If your company makes a particular decision in the face of uncertainty, you estimate that it will either gain $10,000, gain $100

0, or lose $5000, with probabilities 0.40, 0.30, and 0.30 respectively. you (correctly) calculate the emv as $2800. however, you distrust the use of this emv for decision making purposes. after all, you reason that you will never receive $2800; you will receive $10,000, $1000, or lose $5000. discuss this reasoning.
Business
1 answer:
Dominik [7]3 years ago
4 0
EMV is the Expected monetary value of a particular decision. But a decision implies at least 2 choices. Calculating the EMV only makes sense when it is done for all choices. In this example, if your company does A, the EMV of this decision is $2,800. In order to decide what to do, you need to know the EMV of choice B.
Since there is no further information, let's assume that choice B is "doing nothing" and has no costs and no potential gain. Then the EMV for B is $0. A rational decision-maker will chose the option with the highest EMV. In this case, Choice A. It is not about the $2,800, it is about the highest EMV.
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Trade between the middle east brought the black death to europe because
ss7ja [257]

Answer:

Trade between the middle east brought the black death to europe because some of the trading ships passing the trade route was infested with rats that carried the plague.

Explanation:

The Black death also referred to as the bubonic plague was pandemic that was brought about by trade between the Middle East and Europe on the silk road. This plagues killed over 30 to 50 million people when it started from the year 1346 to 1352.

The black death was caused by a Enterobacter bacteria called Yersinia pestis which is present in the vector flea called Oriental rat flea carried by host which were rodents(rats). The rats infested the trading ships from Genoese who came to Europe via Italy. The Black death spread from Asia, down to Europe, Africa and finally the Middle East.

This disease spread from animal to human as well as human to human contact. The characteristics symptoms of this disease includes the presence of boils on the body of the sick that turned sores and the sores eventually became black, hence the name black death. Other symptoms included warm, swollen lymph nodes in the groin or armpit, very high fever, headaches, muscle pain after which death was the end result for some people.

7 0
4 years ago
Read 2 more answers
If the $10.61 cost in 1972 is equal to $68.69 in 2013, then what rate of inflation, i%=?, was used to determine the 2013 costs?
Paraphin [41]

Answer:

inflation rate = 4.66%

Explanation:

we can determine the inflation rate using the future value formula:

future value = present value x (1 + i)ⁿ

  • future value = $68.69
  • present value = $10.61
  • n = 41 years
  • i = inflation rate ?

$68.69 = $10.61 x (1 + i)⁴¹

(1 + i)⁴¹ = $68.69 / $10.61 = 6.474081056

⁴¹√(1 + i)⁴¹ =  ⁴¹√6.474081056

1 + i = 1.0466

i = 1.0466 - 1 = 0.0466 = 4.66%

4 0
3 years ago
If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs for the period, t
Ilya [14]

Answer:

3. ending work in process is less than the amount of the beginning work in process inventory.

Explanation:

As we know that

Manufacturing cost = Cost of Goods Manufactured - Direct Labor - Direct Materials Used + Ending balance of Work-in-Process Inventory - the Opening balance of  Work-in-Process Inventory

And, the Manufacturing cost involves both cost i.e direct material and direct material used

If the cost of goods manufactured more than the total manufacturing costs, so automatically ending WIP inventory should be less then the beginning WIP inventory

6 0
3 years ago
Assume a firm is currently operating at 98 percent of capacity with sales of $28,400. Next year, sales are projected to increase
Lana71 [14]

Answer:

$3,511

Explanation:

The given data:

Current year: operating at 98 percent with sales $28,400

Forecast of next year: sales = $35,000

the firm currently has fixed assets of $16,900 and total assets of $24,600

Current maximum capacity = $28,400 / .98 = $28,979.59

Required addition to fixed assets = [($16,900 / $28,979.59) × $35,000] – $16,900 = $3,511

 

4 0
3 years ago
Under _____, a company compares some dimension of its performance to that of another firm, be it a competitor or in a totally di
denis-greek [22]

Under Price discrimination, an organization compares a few dimensions of its performance to that of another company, be it a competitor or in a totally distinctive industry.

Charge discrimination is a promoting method that fees clients one-of-a-kind charges for the same products or services based on what the seller thinks they can get the patron to comply with. In natural price discrimination, the vendor fees every customer the most fee they'll pay.

Charge discrimination refers to charging distinct clients special costs for the same true carrier. The Sherman Antitrust Act, Clayton Antitrust Act, and Robinson-Patman Act outlaw price discrimination while the intent of that discrimination is to harm competitors.

Price discrimination in a monopoly is a practice of charging extraordinary costs for an equal product. Monopolies generally have extra control over providers than ordinary sellers, which means that they can notably impact the providers' promoting prices.

Learn more about Price discrimination here: brainly.com/question/23342760

#SPJ4

3 0
2 years ago
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