Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Operation Management Expert

Jerry Smith is thinking about opening the bicycle shop in his hometown. Jerry worships to take his own bike on 50-mile trips with his friends, but he thinks that any small business must be started only if there is a good chance of making profit. Jerry can open small shop, a large shop, or no shop at all. Since there will be a 5-year lease on the building which Jerry is thinking about using, he desires to make sure that he formulates the correct decision. Jerry is also thinking about appointing his old marketing professor to conduct the marketing research study. If the study is conducted, the results could either be unfavourable or favourable. Make a decision tree for Jerry. Also!!! Jerry Smith (Problem 3-36) has done some investigation about the profitability of the bicycle shop. If Jerry fabricates the large bicycle shop, he will earn $60,000 if the market is favourable, however he will lose $40,000 if the market is unfavourable. The small shop will return the $30,000 profit in a favourable market and a $10,000 loss in unfavourable market. At the present time, he thinks that there is a 50-50 chance that the market will be favourable. His old marketing professor will charge him $5,000 for marketing research. It is estimated that there is a 0.6 probability that the investigation will be favourable. Moreover, there is a 0.9 probability that the market will be favourable given the favourable outcome from study. But, the marketing professor has warned Jerry that there is only the probability of 0.12 of the favourable market if the marketing research results aren’t favourable. Jerry is confused. Should Jerry employ the marketing research? 

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M913872
  • Price:- $20

Guranteed 24 Hours Delivery, In Price:- $20

Have any Question? 


Related Questions in Operation Management

There are three imperative steps that need to be taken the

There are three imperative steps that need to be taken. The first is a strong commitment by leadership to this very high level of safety and quality. The leadership must set the goal and example for everyone in order to ...

Alice agent is an employee of patti principal she

Alice Agent is an employee of Patti Principal. She negligently runs a stop sign in the course of her employment and injures Bart Bikerider. Can Bart sue Patti for his damages from Alice’s Negligence? Why or why not?

During your professional career you may have received

During your professional career, you may have received performance appraisals. In other cases, your compensation may have been tied to some performance variable. There are many aspects of performance management, compensa ...

The concept of if we fight terrorists somewhere else they

The concept of "If we fight terrorists somewhere else, they will not come here" has been bantered about for years. Do preemptive actions work better than a defensive posture (attacking terrorists on home soil)? Explain y ...

Developnbspa 1225-word change management plan for the

Develop  a 1,225-word Change Management Plan for the organization. Include  how the change affected the human resources function. Consider  the following for your plan: The purpose for the change; The people involved in ...

Discussion questionuse the equity theory to answer the

Discussion question: Use the equity theory to answer the following question: Describe the impact of employee engagement on job satisfaction and turnover.

Case study multiperiod production planning at zeta

Case Study: Multiperiod Production Planning at Zeta, p.362 Attached is the case study. This needs to be completed in Excel and any diagrams need to be able to edited, they cannot be cut and pasted into the excel spreadsh ...

Cookie monster would like 3 pounds of home made cookies

Cookie Monster would like 3 pounds of home made cookies today and an additional 4 pounds of home made cookies tomorrow. Bert is willing to sell a maximum of 5 pounds total at a price of $3.00 per pound today and $2.70 pe ...

What is the most significant learning you will take away

What is the most significant learning you will take away from Our learnings in Indigenous Australian Education? Think about a term, concept, phrase and/or scholar which has moved you into thinking about Indigenous educat ...

Select or create an organization for the authentic

Select or create an organization for the authentic assessment. In this first assignment, you will begin to develop a training needs analysis (TNA) for your chosen organization. 1. Provide information about the organizati ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen