# Quantitative Methods Dm homework

Quantitative Methods Dm homework i will attach it in the word file, see it please
homework_chapter_3.docx

Unformatted Attachment Preview

Don't use plagiarized sources. Get Your Custom Essay on
Quantitative Methods Dm homework
Just from \$13/Page

Homework Chapter 3
Clearly show your calculations in all the problems. Points will not be earned if you do not
show calculations.
1. The following is a payoff table giving profits for various situations.
Alternatives
Alternative 1
Alternative 2
Alternative 3
Do Nothing
States of Nature
A
B
140
160
220
120
120
140
0
0
C
140
70
200
0
What decision would a pessimist make?
2. The following is a payoff table giving profits for various situations.
Alternatives
Alternative 1
Alternative 2
Alternative 3
Do Nothing
States of Nature
A
B
140
160
220
120
120
140
0
0
C
140
70
200
0
What decision should be made based on the minimax regret criterion?
3. Dr. McFadden, a surgeon, must decide what mode of treatment to use on Mr.
Samuels. There are three modes of treatment: Mode A, B, and C; and three possible
states of nature: 1. Treatment succeeds, and patient leads a normal life, 2. Patient
survives treatment but is permanently disabled, and 3. Patient fails to survive
treatment. The probability of that the patient leads a normal life is 0.4, Disability is 0.4
and Non-survival is 0.2. Dr. McFadden has prepared the decision table below. What
mode of treatment maximizes the expected value?
Treatment Mode
A
B
C
P(outcome)
Outcome
Normal Life
\$1,000,000
\$3,000,000
\$4,000,000
0.4
EMV
Disability
-\$2,000,000
-\$2,500,000
-\$3,000,000
0.4
Non-Survival
-\$500,000
-\$500,000
-\$600,000
0.2
4. A plant manager considers the operational cost per hour of five machine alternatives.
The cost per hour is sensitive to three potential weather conditions: cold, mild, and
warm. The following table represents the operations cost per hour for each alternativestate of nature combination:
Alternatives
Machine 1
Machine 2
Machine 3
Machine 4
Machine 5
States of Nature
Weather related cost per hour
Cold cost/day Mild cost/day Warm cost/day
\$42
\$40
\$45
\$45
\$42
\$47
\$40
\$35
\$54
\$60
\$30
\$48
\$45
\$40
\$45
Using the optimistic criterion, which alternative is best?
5. A plant manager considers the operational cost per hour of five machine alternatives.
The cost per hour is sensitive to three potential weather conditions: cold, mild, and
warm. The following table represents the operations cost per hour for each alternativestate of nature combination:
Alternatives
Machine 1
Machine 2
Machine 3
Machine 4
Machine 5
States of Nature
Weather related cost per hour
Cold cost/day
Mild cost/day Warm cost/day
\$42
\$40
\$45
\$45
\$42
\$47
\$40
\$35
\$54
\$60
\$30
\$48
\$45
\$40
\$45
EMV
Assume that for a randomly selected day, there is a 30% probability of cold weather,
50% probability of mild weather, and 20% probability of warm weather. What is the
EVPI?
6. Barbour Electric is considering the introduction of a new product. This product can
be produced in one of several ways: (a) using the present assembly line at a cost of \$20
per unit, (b) using the current assembly line after it has been overhauled (at a cost of
\$5,000) with a cost of \$18 per unit; and (c) on an entirely new assembly line (costing
\$20,000) designed especially for the new product with a per unit cost of \$15. Barbour is
worried, however, about the impact of competition. If no competition occurs, they
expect to sell 10,000 units the first year. With competition, the number of units sold is
expected to drop to 6,000. At the moment, their best estimate is that there is a 40%
chance of competition. They have decided to make their decision based on the first year
sales.
(a) Develop a decision table (EOL).
(b) What decision should they make?

attachment

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: