Find expected value for the add assembly line option, Operation Management

Howard Weiss, Inc., is considering building a sensitive new airport scanning device. His managers believe that there is a probability of 0.40 that the ATR Co. will come out with a competitive product. It Weiss adds an assembly line for the product and ATR Co. does not follow with a competitive product, Weiss's expected profit is $40,000; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $15,000 profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $600,000; if ATR does not compete for this market and Weiss expects a loss of $80,000.

a) Expected value for the Add Assembly Line option = $________

Posted Date: 2/14/2014 3:20:14 AM | Location : United States







Related Discussions:- Find expected value for the add assembly line option, Assignment Help, Ask Question on Find expected value for the add assembly line option, Get Answer, Expert's Help, Find expected value for the add assembly line option Discussions

Write discussion on Find expected value for the add assembly line option
Your posts are moderated
Related Questions

Prepare a SWOT analysis for long-term strategic planning at Sigma Marketing

what is the average value of loyal customer at abby''s restaurants?

Manufacturing Sector - Operation Strategy 1. Manufacturing has become a global industry with worldwide markets and worldwide suppliersĀ  2. Goods becoming commodity items -

What is assuming by Theory X? Ans: Theory X assumes that a typical person dislikes work.

Initially, the mean turnaround time for a stress test was 68 hours. After incorporating changes into the stress-test process, the quality improvement team collected a sample of 50

When conflicting medical opinions are presented, should the advice of a medical expert count more heavily than the opinion of a general physician? Explain your answer.

Outline the provisions of the Worker Adjustment and Retraining Notification Act (WARN) of 1988 stating its rules, liabilities, and loopholes. Discuss the reasons why this act was c

Are the practice questions at the end of the chapters in starting out with Visual Basic 2010 5th edition a good representation of the questions in the Test Bank?

Discuss the strategic importance of layout decisions. How important as these decisions in terms of a company's long-term profitability goals? What are some examples?