What is optimal decision according to emv criterion

Assignment Help Business Management
Reference no: EM1379823

Q. Bulloch County never has allowed liquor to be sold in restaurants. However, in three months, county residents are scheduled to vote on a referendum to allow liquor to be sold by drink. Currently, polls indicate a 60% chance that referendum will be passed by voters. Phil Jackson is a local real estate speculator who is eyeing a closed restaurant building that is scheduled to be sold at a sealed bid auction. Phil estimates that if he bids $ 1.25 million, re is a 25% chance he will obtain property; if he bids $ 1.45 million, re is a 45% chance he will obtain property; also if he bids $ 1.85 million, re is an 85% chance he will obtain property. If he acquires property also referendum passes, Phil believes he could n sell restaurant for $ 2.2 million. However, if referendum fails, he believes he could sell property for only $ 1.15 million. a. Develop a decision tree for this problem. b. What is optimal decision according to EMV criterion?

Reference no: EM1379823

Questions Cloud

What will breakeven be at optimal price structure : Try a range of average check values from $ 1 to $20, compute corresponding demand also find revenue, costs, profits various prices. What is best price to charge. What will breakeven be at optimal price structure.
What decision should be made according to eol decision rule : What decision should be made according to EOL decision rule. How much should Philip be willing to pay to obtain a market forecast that is 100% accurate.
Designing phase of the project management life cycle : Discuss how does the design phase of the project management life cycle differ in content and importance from the other phases?
Find a journal article online about standard costing : Find a journal article online about standard costing. In subject line of your post, include title of article that you read. Post a link to that article with your initial post also provides a summary also a reaction to article.
What is optimal decision according to emv criterion : However, in three months, county residents are scheduled to vote on a referendum to allow liquor to be sold by drink. What is optimal decision according to EMV criterion.
Determine order quantity also determine reorder point : This is my homework problem for Operations also Supply Chain Management this week; can you please help me figure out how to calculate this.
What is best argument for each party : John n filed suit, demanding additional monies. Peter claimed that parties had made an accord also satisfaction. What is best argument for each party.
Discussion on good and bad website : Discover a good website and discuss what makes this site good in bulleted format and provide details for each item.
How much additional money must you set aside each year : How much additional money must you set aside each year if se funds also earn 7 percent in order to meet your goal of $100,000 at end of eight years. By how much would your answer differ if you invested additional funds at beginning of each year in..

Reviews

Write a Review

Business Management Questions & Answers

  Reframing innovation as a strategy

Write down the primary characteristic of the reframing innovation strategy.

  Explain division managers are padding cost estimates

Explain Division managers are padding cost estimates so as to show short-term efficiency gains when the costs come in lower than the estimates.

  The key logistics issues and the primary methods

Who are the key players (three to five major competitors)? Focus in on the key logistics issues and the primary methods used for flow of the products.

  Eliminate discrimination in the workplace

What else do you think could be done to eliminate discrimination in the workplace - What else do you think could be done to eliminate discrimination in the workplace?

  Work in a team in an academic environment

You have the opportunity to work in a team in an academic environment. Determine what have been best practices of a team, and what are some areas of improvement?

  Respondeat superior - liability

Provide an example of a situation in which an assisted-living facility might be liable for the actions of one of its employees for a wrongful act he or she committed

  State how production standards place managements

Explain several of the jobs that have gone by the wayside due to automation changes.

  How much better off will uf''s shareholders be

How much of the firm's value is accounted for by the debt-generated tax shield and how much better off will UF's shareholders be if the firm borrows $20 more and uses it to repurchase stock?

  Case study on the pkolino

Case study on the Pkolino Question based on Case study Provide a summary of the Pkolino ‘story' Is the business plan thorough as well as capture all of the learning that Antonio and JB have accumulated?

  Goals and rewards to motivate employees

Goals and Rewards to Motivate Employees - Describe how goals and rewards can motivate individual and group behaviors and outcomes.

  Calculated an overhead rate for machining costs

Calculated an overhead rate for machining costs ($1,500,000) of $15 per machine hour and Machining costs are driven by machine hours and If computed based on direct labor hours the overhead rate for machining costs would be $30 per direct labor ho..

  Element what the specific rhetorical device is

Element what the specific rhetorical device is, how it is used and whether the persuasive technique is designed to be credible,

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