AP2, Operation Management

Assignment Help:
Play now? Play later?
You can become a millionaire! That''s what the junk mail said. But then there was the fine print:
If you act before midnight tonight, then here are you chances: 0.1% that you receive $1,000,000;
75% that you get nothing, otherwise you must PAY $5000.
But wait, there''s more! If you don''t win the million AND you don''t have to pay on your first attempt then
you can choose to play one more time.
If you do, then we 20X your probability of winning big - yes, you will hava a 2% chance of
receiving $100,000 and 60% chance of winning $7500, but must pay $10,000 otherwise.

What is your expected outcome for attempting this venture? Solve this problem using
a decision tree and clearly show all calculations and the expected value at each node.

Answer these questions:
1) should you play at all? (5%) And if so, what is my expected (net) monitary value? (10%)
2) If you play and don''t win at all on the first try (but don''t lose money), should you try again? (5%) Why? (5%)
3) clearly show the decision tree (40%) and expected net monitary value at each node (25%)

Related Discussions:- AP2

#tLean synchronization, Examples of how companies use lean synchronization ...

Examples of how companies use lean synchronization to reduce the environmental impact of their products

What is the objective of the total productive maintenance, What is the obje...

What is the objective of the total productive maintenance? Total productive maintenance (TPM) aims to shorten lead times by making sure production and machine maintenance staff

Explain ethics training back to the workplace be maximized, Define the term...

Define the term, transfer of learning. (2) A critical issue in training is the transfer of training, and ethics training is no exception. How could the transfer of ethics training

Explain traditional and horizontal organization structure, Identify the mai...

Identify the main types of traditional and horizontal organization structure. Using an organization of your choice as an example how is the structure of the organization a reflecti

Which amendment has had the most impact throughout history, What are the fa...

What are the facts of the case? What is the key constitutional issue presented? Do you agree or disagree with Angel Raich's postion? Review the amendments to the U.S. Constituti

Explain operating cost & labour cost, A location analysis for Temponi Contr...

A location analysis for Temponi Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to 4 locations. Temponi will need to train assembl

Explain how does radisson hotels worldwide apply capacity, How does Radisso...

How does Radisson Hotels Worldwide apply Capacity and Scheduling, and quality?

Explain optimum service level is what percent, In a single period model if ...

In a single period model if shortage cost is four times excess cost then the optimum service level is what percent?

Explain what is the first goal of national unions, What is the first goal o...

What is the first goal of national unions? Elections in units where employees are not currently represented are called? Corporate goal achievement is facilitated or inhibited

Write Your Message!

Captcha
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