Describe expected monetary value, Operation Management

Assignment Help:

XYZ coating company has reviewed four new processes for improving their coating line. The four processes, labeled A, B, C, and D use different technology and have different capacities. All the processes have the same level of production and the lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars. Forecasts indicate that there is a 0.4 probability of acceptance level 1, 0.3 chance of acceptance level 2, 0.6 chance of acceptance level 3, and 0.5 change of acceptance level 4. Consumer Acceptance Level (states of nature) 1 2 3 4 Alternative A 1 2 3 4 35 55 85 165 Alternative B 1 2 3 4 -105 -5 155 225 Alternative c 1 2 3 4 75 85 75 65 Alternative D 1 2 3 4 55 55 75 65 Using the criterion of expected monetary value, which production alternative should be chosen?


Related Discussions:- Describe expected monetary value

Describe with specific ethical reasons, When a government is corrupt and it...

When a government is corrupt and it is taking the life of innocent people, do we have the moral right to destroy the government by force? Please explain with specific ethical reaso

Define elements of finagle a bagels operating system, Now, please answer th...

Now, please answer the question regarding operations management. How would you describe the elements of Finagle a Bagels operating system?

Explain face of economic and work adversity, Why are unions exploring new c...

Why are unions exploring new collaboration solutions in the face of economic and work adversity?

Explain kudler fine food''s marketing strategy and tactics, Resources: Univ...

Resources: University Library, Kudler Fine Foods Virtual Organization Use the Virtual Organization link on the student website to access additional company information on Kudler

Explain what laws are applicable to this fact pattern, Marie wrote Ray a ch...

Marie wrote Ray a check for landscaping her front lawn. Marie paid Ray in advance. The check was dated for five days later than the date of issuance. Ray was supposed to start land

Describe the cleanliness and atmosphere, First, select an independent resta...

First, select an independent restaurant located in California (fast food, fast casual restaurant, casual dining restaurant or buffet restaurant) and dine in the restaurant. You wil

Compute the answers for the missing cells in the table, Process Analytics C...

Process Analytics Case let 1 Overview respond to this case let, which is based in a health care setting.. Preparation Read through the following case let. You are an operations man

Explain definition of a project, Definition of a Project •Analyze how proje...

Definition of a Project •Analyze how project management supports the concept of strategic planning.

Describe the relevance of tqm, Explain the relevance of TQM in decision mak...

Explain the relevance of TQM in decision making and controlling processes.

Compute the past growth rate in earnings, The Bouchard Company's EPS was $6...

The Bouchard Company's EPS was $6.96 in 2005, up from $3.34 in 2000. The company pays out 50% of its earnings as dividends, and its common stock sells for $40. a. Calculate the

Write Your Message!

Captcha
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