Question Completion Status QUESTION 13 Given is a decision payoff table with fut

Question

Question Completion Status QUESTION 13 Given is a decision payoff table with future demand probabilities. Answer all questions below. High Low 21 Moderate mall Facility edium Facility 16 12 0.3 12 20 0.35 Facility Probabilities 0.35 (in 1 decimal place) (in 1 decimal a) The EMV (Expected Monetary Value) for small facility is- b) The EMV (Expected Monetary Value) for medium facility is " place) c) The EOL (Expected Opportunity Loss/Regrets) for medium facility is 17.35] (in 2 decimal places) d) The EOL (Expected Opportunity Loss/Regrets) for large facility is - places) e) The best decision by using EMV is to select the f) The best decision by using EOL is to sclect the (in 2 decimal facility facility QUESTION 14

Explanation / Answer

Ans:

a)EMV(small facility)=13.5

b)EMV(medium facility)=11.8

c)EOL(medium facility)=7.35

d)EOL(large facility)=11.35

e)small facility(as EMV is maximum i.e. EMV=21*0.35+11*0.3+8*0.35=13.5)

f)small facility(as EOL is minimum i.e. EOL=0*0.35+5*0.3+12*0.35=5.7)

low medium high EMV small 21 11 8 13.5 medium 8 16 12 11.8 Large -8 12 20 7.8 prob. 0.35 0.3 0.35 Opportunity loss table low medium high EOL small 0 5 12 5.7 medium 13 0 8 7.35 Large 29 4 0 11.35

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