please answer 12 12. The Boston Celtics is trying to decide which of the followi
ID: 1105593 • Letter: P
Question
please answer 12
12. The Boston Celtics is trying to decide which of the following players(A or B) to sign to a two year contract Predicted Statistics Plaver B Slam Dunks Fouls 300 100 90 500 300 50 The team has done a statistical analysis to determine the value of each field goal gained, the value of each slam dunk gained, and the fouls lost to the team's revenue. Each field goal is worth an extra $100,000, each slam dunk is worth an extra $5,000 and each foul costs $60,000. Player A costs $2 million and Player B costs $1 million. Based on their predicted statistics, which player should the team sign and WHY?Explanation / Answer
As per information given in the problem above
we will do straight forward analysis to find net gains per player and will decide a player whose net gains are higher.
Total Gains from Player A = (300*100000)+(100*5000)-(90*60000) = 24,900,000 =24.9 mn
Cost for Player A = 2,000,000
Net Gain for A = Total Gains - Cost for player = 22.9 mn
Total Gains from Player B = (500*100000)+(300*5000)-(50*60000) = 48,500,000 =48.5 mn
Cost for Player B= 1,000,000
Net Gain for B = Total Gains - Cost for player = 47.5 mn
Net Gain for B > Net Gain for A
Hence Player B should sign.
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