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3 years ago

Choosing the decision alternative with the maximum payoff for the most likely state of nature is called

Business

1 answer:

Assoli18 [71]3 years ago

6 0

Answer:

Maximax

Explanation:

In decision theory, a state of nature can be defined as the uncontrollable natural events, for example freezing temperature or floods, etc. And a pay off always exists each of the pair of the alternative decisions and the states of nature.

Choosing the best alternative with maximum payoff for any state of nature is called as maximax.

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The lender will charge a one-and-a-half-point origination fee and two loan discount points. what will be the total due for point

Paladinen [302]

The total amount payable is $4,025.

(One point equals one percent of the loan amount. 3.5% of $115,000 is three and a half points, or $115,000 x.035 = $4,025. (one and a half and two).

Lender

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7 0

1 year ago

Write notes from any video?

Vadim26 [7]

Yes, you should. Especially if it’s for a test or a grade.

5 0

3 years ago

TJ Co. stock has a beta of 1.45, the current risk-free rate is 5.75, and the expected return on the market is 14 percent. What i

natta225 [31]

Answer:

17.71%

Explanation:

For this problem, we will be making use of the Capital Asset Pricing Model (CAPM) equation, as seen below:

ERi = Rf + β(ERm - Rf)

ERi = expected return of investment
Rf = risk free investment = 5.75%
β = beta of the investment = 1.45
(ERm - Rf) = market risk premium = 14% - 5.75% = 8.25%

ERi = 5.75% + (1.45 x 8.25%) = 5.75% + 11.96% = 17.71%

7 0

4 years ago

Gell Corporation manufactures computers. Assume that Gell:

kkurt [141]

Answer:

$83,000

Explanation:

The computation of the actual manufacturing overhead cost is shown below:

= Indirect labor + depreciation on plant + machinery repair + plant supplies + plant utilities

= $11,000 + $48,000 + $11,000 + $6,000 + $7,000

= $83,000

Only these five items would be considered as a actual manufacturing cost. The rest of the items would be ignored

5 0

3 years ago

BusyBody Company expects its November sales to be 20% higher than its October sales of $ 160 comma 000. Purchases were $ 90 com

lapo4ka [179]

Answer:

Cash balance on November 30 = $77,400

Explanation:

October sales $160,000

November sales $192,000

Calculation: November sales = $160,000 + (160,000 × 20%) = $160,000 + 32,000 = $192,000.

Collection from November $48,000

As 70% will be collected from the next month, therefore we can collect 70% from the month of October = $112,000

Total cash collection in November = $48,000 + $112,000 = $160,000

Cash disbursement for the month of November $110,000 × 30% = $33,000

70% from the month of October $90,000 × 70% = $63,000

Total cash disbursement = $96,000

The cash balance on November 1 = $13,400

Add: cash collection = $160,000

Less: cash disbursement = ($96,000)

Cash balance on November 30 = $77,400

4 0

3 years ago