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.

Compute the expected value of perfect information (EVPI).

Deborah Hollwager, a concessionaire for the Amway Center in Orlando, has developed a table of conditional values for the various alternatives (stocking decisions) and states of nature (size of crowd):

If the probabilities associated with the states of nature are $0.3$ for a large crowd, $0.5$ for an average crowd, and $0.2$ for a small crowd, determine:

The alternative that provides the greatest expected monetary value (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 maximin decision?

Joseph Biggs owns his own ice cream truck and lives 30 miles from a Florida beach resort. The sale of his products is highly dependent on his location and on the weather. At the resort, his profit will be $\$ 120$ per day in fair weather, $\$ 10$ per day in bad weather. At home, his profit will be $\$ 70$ in fair weather and $\$ 55$ in bad weather. Assume that on any particular day, the weather service suggests a $40 \%$ chance of foul weather.

Construct Joseph's decision tree.

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

The difference between job enrichment and job enlargement is that:

a) enlarged jobs contain a larger number of similar tasks. while enriched jobs include some of the planning and control necessary for job accomplishment.

b) enriched jobs contain a larger number of similar tasks. while enlarged jobs include some of the planning and control necessary for job accomplishment.

c) enriched jobs enable an employee to do a number of boring jobs instead of just one.

d) all of the above.

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

Jeffrey Helm owns a health and fitness center called Bulk-Up in Harrisburg. He is considering adding more floor space to meet increasing demand. He will either add no floor space $(\mathrm{N})$, a moderate area of floor space $(\mathrm{M})$, a large area of floor space (L), or an area of floor space that doubles the size of the facility (D). Demand will either stay fixed, increase slightly, or increase greatly. The following are the changes in Bulk-Up's annual profits under each combination of expansion level and demand change level:

Jeffrey is risk averse and wishes to use the maximin criterion.

What are his decision alternatives and what are the states of nature?

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 $\$ 50,000$.

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?

The operator drops a part, which you pick up and hand to him. Does this make any difference in a time study? If so, how?

F. J. Brewerton Retailers, Inc., must decide whether to build a small or a large facility at a new location in Omaha. Demand at the location will either be low or high, with probabilities $0.4$ and $0.6$, respectively. If Brewerton builds a small facility and demand proves to be high, he then has the option of expanding the facility. If a small facility is built and demand proves to be high, and then the retailer expands the facility, the payoff is $\$ 270,000$. If a small facility is built and demand proves to be high, is $\$ 223,000$.

If a small facility is built and demand proves to be low, then there is no option to expand and the payoff is $\$ 200,000$. If a large facility is built and demand proves to be low, Brewerton then has the option of stimulating demand through local advertising. If he does not exercise this option, then the payoff is $\$ 40,000$. If he does exercise the advertising option, then the response to advertising will either be modest or sizable, with probabilities of $0.3$ and $0.7$. respectively. If the response is modest, the payoff is $\$ 20,000$. If it is sizable, the payoff is $\$ 220,000$. Finally, if a large facility is built and demand proves to be high, then no advertising is needed and the payoff is $\$ 800,000$.

What should Brewerton do to maximize his expected payoff?