Use the decision tree analysis to calculate

Assignment Help Operation Management
Reference no: EM131375936

An oil company owns a lease on a potential prospect. can potentially drill two zones. Zone one is a shallow one and zone two is a deep one. of a well in zone one cost $70,000. The will probability of success is 0.4 and a successful well will result in Pv = $350,000. Drilling of zone two will cost $250,000. The probability of success is 0.2 and a successful well will result in PV of $2 million. Which option should the company choose? Draw the decision tree and use the decision tree analysis to calculate.

Reference no: EM131375936

Questions Cloud

Discuss the key risks to a health care organization : Discuss the key risks to a health care organization that fails to allocate sufficient support and resources to a newly implemented health care information system.
News in information systems technology : This is a hard one to find information about, is anyone up for the challenge? What's News in Information Systems Technology?
Explain challenges you encountered when completing report : The sooner you record an incident, the less likely you are to accidentally omit something important. If your report is written well and accurate, it is easier for others to understand and use to make more informed judgments and decisions. Familiar..
Enterprise systems consist of several : Enterprise systems consist of several carefully selected modules that are integrated together as a solution to ensure alignment and synchronisation of operational and business processes.
Use the decision tree analysis to calculate : An oil company owns a lease on a potential prospect. can potentially drill two zones. Zone one is a shallow one and zone two is a deep one. of a well in zone one cost $70,000. The will probability of success is 0.4 and a successful well will result i..
Project-organizational research and theory : 1.  Describe how emotional intelligence and understanding personality types are important for developing relationships. 2. Examine the extent to which you believe that personality profiles can help to reduce workplace conflicts.
Purchase several energy generating facilities : As the owner of an independent firm, you are looking to invest within the energy sector. You would like to purchase several energy generating facilities, but you are unsure about the short-term and long-term benefits this may yield. Several utilit..
Give your opinion on apples product strategy should change : Based on the video, fast forward to current day and give your opinion on whether or not Apple's product strategy should change given its current rate of success and potential competing companies operating within their market.
With respect to corporate entrepreneurship : With respect to corporate entrepreneurship, sustained regeneration occurs when firms develop new culture, processes, or structures to support new product innovations.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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