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:

 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.