Reset Password

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form





$10- $30


Decision theory

Project Description:

<p>XYZ Ltd, manufactures fidget spinners for children. Due to a new demand realized in the market, the firm has to decide whether to expand the present plant or to lease a new one. Expanding the present plant would cost USD. 10 million while leasing a new plant would cost USD. 25 million. Leasing a new plant would also reduce the current unit cost from USD. 7.50 to USD 5.00. A finished fidget spinner is sold at USD12.50 each. However, the demand in uncertain and has the following probability distribution:</p> <p>   No. of fidget spinners ('000' units)      Probability</p> <p>   20                                                       0.05</p> <p>   30                                                       0.15</p> <p>   40                                                       0.30</p> <p>   50                                                       0.30</p> <p>   60                                                       0.20</p> <p> </p> <p>Required: Construct a conditional payoff table for each of the decision alternatives  (10 marks)</p> <p> </p>

About student:

0 rating(0 Reviews)

Tutors Bidding


Bid Price

4.9807692307692 (104 reviews)