Exam 1 C D www.webassig nnet/web/student/Assignment Responses/last?dep 16299901

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Exam 1 C D www.webassig nnet/web/student/Assignment Responses/last?dep 16299901 Show My Work has not been graded yet. uploaded Fae (10se No Fils to Display Ask Your Your Abercrom B men's fashion outlet has a 30% chance of launching an expensive line of used auto-mechanic dungarees (complete with grease stains) and a 70% chance of staying instead with its traditional military-style new from you in the mal Abercrom A, appears to be deciding between a line of torn dungarees. Your rival across torn gym shirts and a more daring line of "empty shirts' (that is, empty shirt boxes). Your corporate for the empty shirt option. The payoff matrix below gives the number of customers your outlet expect to gain from Abercrom Ain each situation. Abercrom A Torn shirts Empty Shirts Abercrom Mechanics B What is the expected resulting effect on your customer base? Need Help? Tak to a T Show My Work ren What steps or reasoning did you use? Your work counts towards y sco uploaded File (13se maximum) submit show my work an unlimited number of times No Files to Display

Explanation / Answer

The chance that Abercrom A opts for Empty shirts = 0.2
The chance that Abercrom A opts for Torn shirts = 1 - 0.2 = 0.8
The chance that Abercrom B opts for Mechanics = 0.3
The chance that Abercrom B opts for Military = 0.7
The chance that Abercrom A opts for Torn shirts = 1 - 0.2 = 0.8
The chance of Abercrom B opts for Mechanics and Abercrom A opts for Torn Shirts = 0.3*0.8 = 0.24
The chance of Abercrom B opts for Mechanics and Abercrom A opts for Empty Shirts = 0.3*0.2 = 0.06
The chance of Abercrom B opts for Military and Abercrom A opts for Torn Shirts = 0.7*0.8 = 0.56
The chance of Abercrom B opts for Military and Abercrom A opts for Empty Shirts = 0.7*0.2 = 0.14
Expected resulting effect = 0.24*30 + 0.06* -50 + 0.56* -30 + 0.14*50 = -5.6

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