probability-for-a-strong-market-assignment-help-

Modern Electronics specializes in manufacturing modern electronic components.  It also builds the equipment that produces the components.  Modern Electronics is considering building a new facility but the estimated profits would be impacted by the type of market that develops.  The probability for a strong market is 0.1; for a fair market is 0.3; and for a poor market is 0.6. You are responsible for advising the president of Modern Electronics on the type facility that should be built or to not build a facility at all.  The table shows the estimated profits under each market and for each size facility.

Explanation: You can use QM for Windows->Decision Analysis->Decision Table with the above information.

	Estimated Profits
	Strong Market	Fair Market	Poor Market
Build a large facility	550,000	150,000	-500,000
Build a medium-size facility	500,000	125,000	-150,000
Build a small facility	250,000	75,000	-25,000
Do not build a facility	0	0	0

1.  What is your recommendation to the president based on expected value that maximizes profits (EMV)?

Answer:

Explanation (include expected monetary value): 

Software Output:

2.  Provide a second recommendation to the president that minimizes regret.

Answer: 

Explanation (include expected monetary value):

Software Output:

 

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