Make using agressive strategy and conservative strategy

Assignment Help Operation Management

Reference no: EM131370538

Suppose that a car-rental agency offers insurance for a week that costs $75. A minor fender bender will cost $2,000, whereas a major accident might cost $16,000 in repairs. Without the insurance, you would be personally liable for any damages. What should you do? Clearly, there are two decision alternatives: take the insurance, or do not take the insurance. The uncertain consequences, or events that might occur, are that you would not be involved in an accident, that you would be involved in a fender bender, or that you would be involved in a major accident. Develop a payoff table for this situation. What decision should you make using each strategy?

a. agressive strategy

b. conservative strategy

c. opportunity-loss strategy

Reference no: EM131370538

Questions Cloud

Complementary product for the citrus are : Complementary product for the citrus are? (Complementary products : new products using similar technologies that can be coexist in a family of products. These products extend the life of the product line by offering new features or improvements to pr..

Case for regional economic integration with agreements : One of the things that this law does is to guarantee that they won't suffer from the gamble they take normally as being part of the economic marketplace. Outline the case for regional economic integration with agreements and trade zones, etc. How sho..

Define national culture-business culture and occupational : What are some major philosophies of each of the world's major religions? Pick two religions and discuss how they affect the business environment. Define national culture, business culture, occupational, and organizational culture. Discuss how the var..

Was this relationship a partnership for a term : Grace Anderson and her sons, Manny and Jason, bought a ranch known as the Cowboy Palace Place in March 2012, and the three verbally agreed to share the business for five years. Grace contributed 50 percent of the investment, and each son contributed ..

Make using agressive strategy and conservative strategy : Suppose that a car-rental agency offers insurance for a week that costs $75. A minor fender bender will cost $2,000, whereas a major accident might cost $16,000 in repairs. Without the insurance, you would be personally liable for any damages. What d..

Describe the globe cultural framework : Describe the GLOBE cultural framework. How is this cultural framework different from Hofstede's framework? Compare and contrast pre-industrial, indusrial, and post-industrial societies. Discuss the implications for multinationals of any one of these ..

Supply chain management describe manufacturing and services : Supply chain management describe manufacturing and services (example include for both). What do you think of the power and influence assessment? How will it affect your actual work activities and interactions? Briefly explain theory of constraints an..

The manufacturer rejects the claim : A business product costing $100 was purchased for commercial use, but after three months, it broke. The warranty is a limited 90 day warranty. A claim is filed. After 3 months of waiting, the manufacturer rejects the claim. What is the best option at..

Business of direct to consumers genetic testing : Many private companies are getting into the business of Direct to Consumers (DTC) genetic testing. Consider for example Facebook’s ”Genes for Good”,

User Account

All Pages