b. $0.30 c. $0.65 d. $0.15 e. None of the above 19. If the agent will use the se
ID: 363823 • Letter: B
Question
b. $0.30 c. $0.65 d. $0.15 e. None of the above 19. If the agent will use the servic e for daytime calls only, is there any plan that is never optimal? A. No - each plan will be optimal at some level of usage B. Yes- Plan A is never optimal C. Yes - Plan B is never optimal D. Yes - Plan C is never optimal e, agent will be making day calls mostly and is expecting an average usage of 1300 minutes per mont which plan should (s)he get? A. Plan A B. Plan B C. Plan C D. All plans are best over some levels of day calls (minutes) 21 Compute the m peonthly cost for Plan B if the agent makes the following calls in a given month: 1000 ev minutes, 1000 day minutes a given month: 1000 e Compute the monthly cost for Plan C if the agent makes the following calls in minutes, 1000 day minutes 22. Decision Making 1 Clay Whybark, a soft drink vendor at Hard Rock Café's annual Rock Fest, created a table for the various alternatives (stocking decisions) and states of nature (size of crowd). The payo below represents the net profits for each of the stocking levels and the sizes of the crowd. Stocking Levels Large Stock Average Stock Small Stock Size of Crowd Big Average Small $22,000 $12,000 ($2,000) $14,000 $10,000 $6,000 $9,000 $8,000 $4,000 Net Profits 23. Under an environment of uncertainty, what alternative would a risk-averse decision maker re A. Large Stock B. Average Stock C. Small Stock 24 Under an environment of uncertainty, what alternative would a gambler recommend? A. Large Stock B. Average Stock C. Small Stock 25. Using the simple average method, the best alternative would be to A. Large Stock B. Average Stock C. Small StockExplanation / Answer
Answer of decision making 1
Answer 23
A risk averse person would choose small stock because he takes up stock with low risk
Answer 24
Under uncertainity a gambler would take a large stock because he is a risk taking person and has greed to earn more and more so he takes more risk
Answer 25
Average of large stock = $10,667
Average of average stock =$10,000
Average of small stock =$ 7000
Best alternative is average stock as it gives proper returns with average risk
Answer 27
Average stock option = $1400+8000+600 = $10000
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