About the decision tree software

Assignment Help Operation Management
Reference no: EM131030639

Using PrecisionTree (Decision Tree software), what decision will OWNER make if she is an expected monetary value (EMV) maximizer? Build the decision tree in PrecisionTree:


1. Owner is considering submitting a proposal for an electronic timing system for the 2016 Olympic Games.

2. Owner estimates the chance that they will succeed in developing the microprocessor in time to be 30%.

3. If they succeed in developing the microprocessor, there is an excellent chance that Owner's company will win the $1.5 million Olympic contract.

4. Owner estimates this chance to be 80%.

5. Owner can also submit a proposal based on an alternative, inferior timing system that has already been developed.

6. Owner estimates the chance of winning the contract with the existing system to be 10%. Owner is allowed to submit at most one proposal.

7. If Owner pursues the new microprocessor, Owner must invest $250,000 in further research and development.

8. In addition, submitting a proposal requires developing a prototype timing system at an additional cost of $50,000 (regardless of whether the technology used is new or old).


9. Finally, if Owner wins the contract, the finished product will cost an additional $200,000 to produce (again, regardless of the technology).

Reference no: EM131030639

They are limited to reasonable uses

Nestlé holds a 99-year lease for the land that the Sanctuary Spring sits on. While lease-holders are generally understood to be able to make full use of their land, when publi

Discuss differences in pricing strategies for your product

Describe a situation that would require you to adapt the price of your product or service (a low calorie sugar free soft drink). Provide specific examples to support your resp

The two gifts under consideration are an umbrella

You work for a public television station. You are running a week-long campaign in an effort to get donations. You run spots (sales pitches for money) and offer promotional gif

Adverse impact on the hiring process

Your company has been granted a large contract by the government and as a result, you need to hire 100 people to meet the needs of this contract, per your strategic plan. Dete

Examining the delivery by drone test program

Amazon has tested an Amazon Prime drone delivery program in a rural and suburban area for one year. Now that Amazon has more data, your committee has been asked to conduct a s

Use graphical solution procedure to find optimal solution

Assume that the objective function coefficient for X changes from 8 to 6. Does the optimal solution change? Use the graphical solution procedure to find the new optimal soluti

Average aggregate inventory value for raw material

A firm had the following annual data: COGS = $1,265M; Raw material used = $500M. Based on this data, can we calculate the weeks of supply of raw material although the average

Annual order cost and annual total inventory cost

The weekly requirement of a part is 950 units. The order cost is $85 per order, the holding cost is $5 per unit per year and the part cost is $250 per unit. The firm operates


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd