Question 1

What should the credit union do? What is their expected profit?

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Question 2

The station is most uncertain about the average monthly revenue associated with the rock format and an A1 audience.Construct a strategy region chart for this input variable with a possible range from $85,000 to $200,000.Does the optimal decision to select the country format change at any point in this range?

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Question 3

Formulate a payoff table that specifies WTC's payoff (in dollars)associated with each possible decision and each market condition in the future.

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Question 4

Construct a decision tree to identify the buyer's course of action that maximizes the expected profit earned by the chain from the purchase and subsequent sale of footballs in the coming year.

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Question 5

What are the expected payoffs for the three alternatives?

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Question 6

As the average monthly revenue associated with the rock format and an A1 audience varies between $85,000 to about $140,000,what happens to the maximum expected revenue? Briefly explain why.

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Question 7

What is the probability that a randomly selected individual from this population earns less than $50,000 per year?

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Question 8

What course of action is optimal for WTC? What is the expected profit in that case?

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Question 9

What format is optimal? What is the expected profit in that case?

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Question 10

Construct a decision tree to help the station identify its optimal format.Make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

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Question 11

Formulate a payoff table that specifies the contribution to profit (in dollars)from the sales of footballs by this chain for each possible purchase decision (in hundreds of pairs)and each outcome with respect to consumer demand.

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Question 12

What else might one consider in choosing from among these alternatives?

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Question 13

Generate a risk profile for each possible decision in this problem.Would this have any impact on your decision?

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Question 14

Construct a decision tree to help the credit union decide whether or not to make the loan.Make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

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Question 15

Construct a decision tree to identify the course of action that maximizes WTC's expected profit.Make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

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Question 16

What is the optimal strategy for order quantity,and what is the expected profit in that case?

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Question 17

If a randomly selected individual is observed to earn at least $50,000 per year,what is the probability that this person is a man?

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Question 18

As the average monthly revenue associated with the rock format and an A1 audience varies between about $142,500 and $200,000,what happens to the maximum expected revenue? Briefly explain why.

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Question 19

If a randomly selected individual is observed to earn less than $50,000 per year,what is the probability that this person is a woman?

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Question 20

Generate a risk profile for each of WTC's possible decisions in this problem.Characterize the differences in risk for the different options.

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Quiz 6: Decision Making Under Uncertainty

What should the credit union do? What is their expected profit?

Formulate a payoff table that specifies WTC's payoff (in dollars)associated with each possible decision and each market condition in the future.

Construct a decision tree to identify the buyer's course of action that maximizes the expected profit earned by the chain from the purchase and subsequent sale of footballs in the coming year.

What are the expected payoffs for the three alternatives?

As the average monthly revenue associated with the rock format and an A1 audience varies between $85,000 to about $140,000,what happens to the maximum expected revenue? Briefly explain why.

What is the probability that a randomly selected individual from this population earns less than $50,000 per year?

What course of action is optimal for WTC? What is the expected profit in that case?

What format is optimal? What is the expected profit in that case?

Construct a decision tree to help the station identify its optimal format.Make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

Formulate a payoff table that specifies the contribution to profit (in dollars)from the sales of footballs by this chain for each possible purchase decision (in hundreds of pairs)and each outcome with respect to consumer demand.

What else might one consider in choosing from among these alternatives?

Generate a risk profile for each possible decision in this problem.Would this have any impact on your decision?

Construct a decision tree to help the credit union decide whether or not to make the loan.Make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

Construct a decision tree to identify the course of action that maximizes WTC's expected profit.Make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

What is the optimal strategy for order quantity,and what is the expected profit in that case?

If a randomly selected individual is observed to earn at least $50,000 per year,what is the probability that this person is a man?

As the average monthly revenue associated with the rock format and an A1 audience varies between about $142,500 and $200,000,what happens to the maximum expected revenue? Briefly explain why.

If a randomly selected individual is observed to earn less than $50,000 per year,what is the probability that this person is a woman?

Generate a risk profile for each of WTC's possible decisions in this problem.Characterize the differences in risk for the different options.