Probability
Temilore1Probability Analysis
A General Manger of Harley-Davidson has to decide on the size of a new facility. The GM has narrowed the choices to two: large facility or small facility. The company has collected information on the payoffs. It now has to decide which option is the best using probability analysis, the decision tree model, and expected monetary value.
Options:
Facility | Demand Options | Probability | Actions | Expected Payoffs |
Large | Low Demand | 0.4 | Do Nothing | ($10) |
Low Demand | 0.4 | Reduce Prices | $50 | |
High Demand | 0.6 | $70 | ||
Small | Low Demand | 0.4 | $40 | |
High Demand | 0.6 | Do Nothing | $40 | |
High Demand | 0.6 | Overtime | $50 | |
High Demand | 0.6 | Expand | $55 |
Determination of chance probability and respective payoffs:
Build Small: | |
Low Demand | 0.4($40)=$16 |
High Demand | 0.6($55)=$33 |
Build Large: | |
Low Demand | 0.4($50)=$20 |
High Demand | 0.6($70)=$42 |
Determination of Expected Value of each alternative
Build Small: $16+$33=$49
Build Large: $20+$42=$62
Click here for the Statistical Terms review sheet.
Submit your conclusion in a Word document to the M4: Assignment 2 Dropbox by Wednesday, August 13, 2014.
Assignment 2 Grading Criteria | Maximum Points |
The diagram is accurate and labeled correctly. The diagram clearly illustrates the sequence of events and their probability of occurrences. | 32 |
A step-by-step breakdown of the calculations for the chance of probability and respective payoff is clearly communicated. The results of the calculations are accurate. | 28 |
A step-by-step breakdown of the calculations for expected value is clearly communicated. The results of the calculations are accurate. | 20 |
Clear and concise statement explaining the decision and a description of elements that lead to the decision. | 20 |
Total: | 100 |
- 10 years ago
- 5
Purchase the answer to view it
- probability.docx
Purchase the answer to view it
- assignment_2_probability_analysis.docx
Purchase the answer to view it
- harley-davidson.doc
Purchase the answer to view it
- probability_analysis.docx
- probability_analysis.xlsx
Purchase the answer to view it
- probability_analysis.docx
Purchase the answer to view it
- paper_-_writeup-solution.docx
Purchase the answer to view it
- assignment_2_probability_analysis.docx
Purchase the answer to view it
- bus_499_module_4_assignment_2_probability_analyses.docx
- Five pages paper.
- Allen
- hello
- write a paper about; (The Month of Ramadan in Islamic Religion as in Ritual)
- When conducting an accident investigation
- explanation
- 3 pages 19 hrs only
- Chemical Bonds and Naming Test
- Suppose that a CPU always executes the two instructions following a branch instruction, regardless of whether the branch is taken...
- ART 101 Week 9 CheckPoint and Final Project