What is the optimal decision strategy

Assignment Help Operation Management
Reference no: EM131133651

Myraa airlines decided to offer direct service from Akron to Clearwater beach, Florida. Management must decide between full-price service using a company’s new fleet of jet aircraft and a discount-service using smaller capacity commuter planes. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service on Clearwater beach: high, moderate, and low. The following table shows the estimated quarterly profits (in thousands of dollars): Service Demand for service High Medium Low Full price 900 760 –430 Discount 710 650 350 The probabilities for the demand is P(High) = 0.3, P(Medium) = 0.5, and P(Low) = 0.2, respectively. a. What is the optimal decision strategy if perfect information were available? b. What is the expected value for the decision strategy developed in part a? c. Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? d. What is the expected value of perfect information?

Reference no: EM131133651

Federal workers at the lowest level of federal bureaucracy

Suppose that there are 1 million federal workers at the lowest level of the federal bureaucracy and that above them there are multiple layers of supervisors and supervisors-of

Describe the behaviors linked with this style

Explain the opportunistic style and how it is derived from the managerial grid by answering the following: Describe the behaviors linked with this style. Provide at least 3 ex

Blended with cultures values-attractive employee benefits

What is your assessment of Alibaba’s six core values? Is there anything particularly Chinese about these core values or do you notice that it is blended with other cultures' v

Subcomponents enter into mps items a and b

You are a materials planner and are responsible for, among other things, components X and Y. Components X and Y enter into subcomponents J and Q, and these subcomponents ent

Ethical implications of pursuing social responsibility

You should also prepare a statement that discusses the ethical implications of pursuing a social responsibility program. Any program that you implement will redirect resources

About leader behavior and leader effectiveness

Bowers and Seashore (1966) suggested that group effectiveness was, in part, dependent upon the presence of a set of behaviors that we commonly associate with leadership. Sever

What type of primaries are used in texas

What type of primaries are used in Texas? Are primaries used for all elections in Texas? Why is campaigning for office so difficult in Texas? What advantages do incumbents hav

The lean tool to reduce setup times is smed

The lean tool to reduce setup times is SMED; this acronym stand for : Which of the following is NOT one of the 7+ (or 8) categories of waste or muda? Pursuing perfection in le


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