The Bell Computer Company is considering a plant expansion enabling the company
ID: 3181293 • Letter: T
Question
The Bell Computer Company is considering a plant expansion enabling the company to begin production of a new computer product. You have obtained your MBA from the University of Phoenix and, as a vice-president, you must determine whether to make the expansion a medium- or large- scale project. The demand for the new product involves an uncertainty, which for planning purposes may be low demand, medium demand, or high demand. The probability estimates for the demands are 0.20, 0.50, and 0.30, respectively.
Explanation / Answer
You have have not given profits according to corresponding probabilities demand estimates.
If you realized the table the solution is simple multiply the corresponding probability estimate with is profit i.e
X*f(X)
Sum up them youll get E(x).
Do it for both medium scale and large scale.find out which E(x) is greater then go with it is the best.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.