Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd):

	STATES OF NATURE (DEMAND)
ALTERNATIVES	BIG	AVERAGE	SMALL
Large stock	$\$22,000$	$\$12,000$	$-\$2,000$
Average stock	$\$14,000$	$\$10,000$	$\$6,000$
Small stock	$\$9,000$	$\$8,000$	$\$4,000$

The probabilities associated with the states of nature are $0.3$ for a big demand, $0.5$ for an average demand, and $0.2$ for a small demand.

Determine the alternative that provides Andrew the greatest expected monetary value (EMV).

Given the following conditional value table, determine the appropriate decision under uncertainty using maximin.

Given the following conditional value table, determine the appropriate decision under uncertainty using maximax.

Concerns of suppliers when moving to Supplier Partnerships include:

a) small lots sometimes seeming economically prohibitive.

b) realistic quality demands.

c) changes without adequate lead time.

d) erratic schedules.

e) all of the above.

Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Ian developed the following table:

For example, if Ian constructs a small station and the market is good, he will realize a profit of $\$ 50,000$.

Develop a decision tree. Assume each outcome is equally likely, then find the highest EMV.

Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Ian developed the following table:

For example, if Ian constructs a small station and the market is good, he will realize a profit of $\$ 50,000$.

What is the equally likely decision?

Write the numerical value for each of the following prefixes: deci

Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Ian developed the following table:

For example, if Ian constructs a small station and the market is good, he will realize a profit of $\$ 50,000$.

Develop a decision table for this decision, like the one illustrated in Table A. 2 earlier.

Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Ian developed the following table:

For example, if Ian constructs a small station and the market is good, he will realize a profit of $\$ 50,000$.

What is the maximin decision?

Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Ian developed the following table:

For example, if Ian constructs a small station and the market is good, he will realize a profit of $\$ 50,000$.

What is the maximax decision?

What are the expected number of yearly breakdowns for the power generator at Orlando Utilities that has exhibited the following data over the past 20 years?

The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $\$ 2,000$. The current maintenance policy (with station employees performing maintenance) has yielded the following history:

This manufacturer will guarantee repairs on any and all failures as part of a service contract. The cost of this service is $\$ 5,000$ per year.

What is the cost of the current maintenance policy?

The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $2,000. The current maintenance policy (with station employees performing maintenance) has yielded the following history:

This manufacturer will guarantee repairs on any and all failures as part of a service contract. The cost of this service is$5,000 per year. What is the more economical policy?

What are the expected number of yearly breakdowns for the power generator at Orlando Utilities that has exhibited the following data over the past 20 years?