Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

problem 1)a) Food products company is contemplating the introduction of revolutionary new product with latest packaging to replace  existing product at much higher price (A) or moderate change in composition of existing product with new packaging at a small increase in price (B) or a small change in the composition of existing product except the word ‘New’ with a negligible increase in price (C).

Three possible states of nature or events are (i) high increase in sales (P), (ii) nochange in sales (Q), and (iii) decrease in sales (R). The marketing department of company worked out the payoffs in terms of yearly net profits for each of the strategies of the events (expected sales). This is represented in the adjoining table.

2029_Payoffs.jpg

(i) Minimax Regret Criterion

(ii) Laplace Criterion

(iii) Hurwicz (assume that α = 0.6)

(b) Mr John buys perishable commodity at Rs 5 each. The profit per unit is Rs 5. This perishable commodity he can keep in his shop for a week and at the end of each week the leftover are sold to a restaurant for Rs 3 each (at a loss of Rs 2 each). Mr John has given the record for the past 100 weeks for his weekly sales as given below:
Weekly demand           1               2            3            4           5          6              7
Number of weeks         5              10           25         30         20          5             5

(i) Construct conditional profit table.

(ii) Find out the optimum number of units of this commodity to order weekly, so as to maximize his profit.

(iii) find out the Expected Profit of Perfect Information (EPPI).

(iv) find out the Expected Value of Perfect Information (EVPI).

(v) Interpret the value of EVPI.

(c) A businessman has two independent investments A and B available to him but he lacks capital to undertake both of them simultaneously. He can select to take A first and then stop, or if A is successful then take B, or vice versa. Probability of success for A is 0. 65 while for B it is 0.45. Both investments require an initial capital outlay of Rs 2,500.; and both return, nothing if venture is unsuccessful. Successful completion of A will return Rs 3, 500 (over cost) and successful completion of B will return Rs 5500 (over cost). Draw and estimate the decision tree by the roll back technique and find out the best strategy.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M96650

Have any Question? 


Related Questions in Statistics and Probability

Jullian was curious if regular excise really helps weight

Jullian was curious if regular excise really helps weight loss,she decided to perform a hypothesis test. A random sample of 5 Kansas State students was chosen. The students took a 30-minute exercise every day for 6 month ...

Assignment choice 1 the great migrationwrite an essay on

Assignment Choice #1: The Great Migration Write an essay on the great migration of the black population to the northern United States.  What were the reasons for the great migration? What were some of the risks involved ...

Question 1 -happy harrys hamburgers recently commissioned a

Question 1 - Happy Harry's Hamburgers recently commissioned a top tier consulting company to develop a new location selection process. However, after receiving the first invoice from the consulting company, Happy Harry w ...

Discuss the changes to european imperialism between the

Discuss the changes to European imperialism between the World Wars.

A box of teddy grahams chocolate cookies is supposed to

A box of Teddy Grahams chocolate cookies is supposed to weigh 250 grams. There is some variation in weight from box to box. The box contents are Normally distributed with an unknown mean and a known standard deviation of ...

Questions1 the following results were observed in a

QUESTIONS: 1. The following results were observed in a prospective study of the drug Viagra (based on data from Pfizer Inc.)  Use the data to answer the following questions:   Viagra Treatment Placebo Headache 117 29 No ...

A recent report suggested that older people think more

A recent report suggested that older people think more slowly than younger people because they have more information stored in their brains.  Because WeStudyEverything wasn't sure regarding the source of the study, they ...

Prove that if romeo and juliet are matched to each other

Prove that if Romeo and Juliet are matched to each other under both the men's courtship and the women's courtship algorithms, then they are matched to each other under any stable matching.

Given a stable matching of n men and n womena is it

Given a stable matching of n men and n women, (a) Is it possible to find three pairs such that if the matching among them is changed, each man will be matched to a woman whom he prefers, and each woman will be matched to ...

1 must all experiments include a control group explain2 in

1. Must all experiments include a control group? Explain. 2. In what way do researchers take a risk if they do not pilot test the independent variable they plan to use in an experiment?

  • 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