What is the payoff if the survey is conducted

Assignment Help Supply Chain Management

Reference no: EM131843562

Jerry Young is considering opening a bicycle shop in his hometown. Jerry can open a small shop, a large shop, or no shop at all.

Because there will be a five-year lease on the building that Jerry is thinking about using, he wants to make sure that he makes the correct decision. If Jerry builds the large bicycle shop, he will earn $60,000 if the market is favorable but he will lose $40,000 if the market is unfavorable.

The small shop will return a $30,000 profit in a favorable market and a $10,000 loss in an unfavorable market. Jerry's old marketing professor will charge him $5,000 for a marketing survey. It is estimated that there is a 0.6 probability that the survey will be favorable.

Furthermore, there is a 0.9 probability that the marker will be favorable if the outcome of the survey is favorable. However, the marketing professor has warned Jerry that there is only a 0.12 probability of a favorable markey if the marketing research results are not favorable.

If the survey is conducted and the results are favorable, what is the payoff?

Reference no: EM131843562

Questions Cloud

Hat mechanism would you implement in the process scheduler : hat mechanism would you implement in the Process Scheduler to automate the termination of a job that's in an infinite loop?

What proportion of young adults preferred taco bell : What proportion of young adults preferred Taco Bell? Round to the nearest hundredths place (i.e., two decimal places).

Prepare the entries to record the disposal : Prepare the entries to record the disposal under each of the following separate assumptions.

Find the value of the f-test statistic : Given that s = 6.60 for women and s = 6.02 for men, find the value of the F-test statistic.

What is the payoff if the survey is conducted : Jerry Young is considering opening a bicycle shop in his hometown. Jerry can open a small shop, a large shop, or no shop at all.

How does enterprise resource planning affect feedback : All businesses confront specific and identifiable types of strategic challenges over time as they develop through stages.

Create a new table containing the four columns : Create a new table containing these four columns from the existing BOOKS table: ISBN, Cost, Retail, and Category.

How many combinations of survivors are there : Six workmen are on a sinking barge and there are only four life jackets. How many combinations of survivors are there?

What markup percentage must now be obtained : A buyer plans to purchase jackets at a 58% markup with a retail value of $18,500. If the buyer acquires 100 jackets at $54.75 each and retails them.

User Account

All Pages