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pentagon [3]
2 years ago
3

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benef

it of selecting machine A is $45,000, with a probability of 90%; the expected benefit of selecting machine B is $80,000, with a probability of 50%; and the expected benefit of selecting machine C is $60,000, with a probability of 75%?
Business
1 answer:
Mila [183]2 years ago
7 0

Answer:

machine C

Explanation:

A decision tree shows the possible outcomes from making different decisions based on cost, probability and profit. Expected benefit is the product of value of an outcome and the probability.

The different machines expected benefits are:

Expected benefit for machine A = $45000 × 90% =  $45000 × 0.9 = $40500

Expected benefit for machine B = $80000 × 50% =  $80000 × 0.5 = $40000

Expected benefit for machine C = $60000 × 75% =  $60000 × 0.75 = $45000

Since machine C has the expected benefit, it be selected so as to maximize payoff

You might be interested in
Swazzi has released a new line of sweater vests, but they are selling poorly. Store managers say they need same-day information
BARSIC [14]

Answer:

Since Store managers say they need same-day information on the company's advertising plans, store managers can email me directly for this information.

Explanation:

The situation at Swazzi is precarious since they are not selling the new line of sweater vests well enough to match their sales forecast.

Store managers who are interacting with the consumers at their different outlets will definitely try to find a way to drive sales, hence their request for same day advertising plans from the company.

Mitigating this short fall calls for escalating and responding to requests from the company and the store managers hence the need for a very fast and cost effective communication medium.

For swift communication between the company and store managers, it is okay for store managers to email their request directly and vice versa.

6 0
2 years ago
QUESTION 11 Given the following information, calculate the equity dividend rate for this investment: first-year NOI: $18,750; be
Alja [10]

Answer: D. 2.2%

Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.

Here, before-tax cash flow =  $11,440

Acquisition price = $520,000

So Equity Dividend Rate = \frac{11440}{520000} X 100

     Equity Dividend Rate = 2.2%

In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.

4 0
2 years ago
____________ tend to focus on the logical soundness and preciseness of ideas, rather than the ideas’ practical values; they tend
lapo4ka [179]

Answer:Assimilitors

Explanation:

The assimilators are the individuals who depend on the reflective observation and conceptualization on abstracts.

These are the set of individuals who seems to more concerned about the abstract ideas and concepts rather than concerned about about other people. The assimilators also focus on how precise and logically sound an idea is, rather than focusing on the practical values of the ideas. .

7 0
2 years ago
to recieve a 14% return on an investment of 500,000 what would be the required net operating income of the purchased property?
agasfer [191]

Answer:

70000

Explanation:

Investment = 500000 .00

expected ROI = 14%

ROI = (Operating income / investment ) x 100

operating income = ( ROI x investment )/ 100

= 14 x 500000/100

= 70000 .  Ans

6 0
2 years ago
Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75
soldi70 [24.7K]

Answer:

5,182 Units

Explanation:

The computation of additional units is given below:-

Operating income = Contribution Margin Per unit × Units - Fixed cost

= ($4.50 - $1.75) × 29,000 - 8,500

= $71,250

Operating income is increased by 20%

Operating income = $71,250 × 1.20

= $85,500

So, per units

$85,500 = ($4.50 - $1.75) × Units - 8,500

= $94,000 ÷ 2.75

= 34,181.82

Additional Units

= 34,181.82 - 29,000

= 5,182 Units

8 0
2 years ago
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