A General Manger of Harley-Davidson has to decide on the size of a new facility. The GM has narrowed the choices to two: large facility or small facility. The company has collected information on the payoffs. It now has to decide which option is the best using probability analysis, the decision tree model, and expected monetary value.
|Facility||Demand Options||Probability||Actions||Expected Payoffs|
|Large||Low Demand||0.4||Do Nothing||($10)|
|Low Demand||0.4||Reduce Prices||$50|
|High Demand||0.6||Do Nothing||$40|
Determination of chance probability and respective payoffs:
Determination of Expected Value of each alternative
Build Small: $16+$33=$49
Build Large: $20+$42=$62
Submit your conclusion in a Word document (No Page Count Specified).
$10 agreed upon before I sign handshake. No back & forth messages on price. Thanks!
Here is grading criteria:
|Assignment 2 Grading Criteria||
|The diagram is accurate and labeled correctly. The diagram clearly illustrates the sequence of events and their probability of occurrences.||
|A step-by-step breakdown of the calculations for the chance of probability and respective payoff is clearly communicated. The results of the calculations are accurate.||
|A step-by-step breakdown of the calculations for expected value is clearly communicated. The results of the calculations are accurate.||
|Clear and concise statement explaining the decision and a description of elements that lead to the decision.||
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more