A manufacturing company is faced with the problems of choosing four products to manufacture. The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities for...

A manufacturing company is faced with the problems of choosing four products to manufacture.<br>The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities for<br>each type are given below :<br>Products<br>Probabilities<br>Good<br>Satisfactory<br>Рor<br>A<br>0.60<br>0.20<br>0.20<br>B<br>0.75<br>0.15<br>0.10<br>C<br>0.60<br>0.25<br>0.15<br>D<br>0.50<br>0.20<br>0.30<br>The estimated profit/loss under different states of demand may be taken as under.<br>Products<br>Profit or Lo:<br>Good<br>Satisfactory<br>Рoor<br>A<br>40,000<br>10,000<br>1,100<br>B<br>40,000<br>20,000<br>|-7,000<br>C<br>50,000<br>15,000<br>|-8,000<br>D<br>40,000<br>18,000<br>15,000<br>Prepare expected value table and advice the company about the choice of the product.<br>

Extracted text: A manufacturing company is faced with the problems of choosing four products to manufacture. The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities for each type are given below : Products Probabilities Good Satisfactory Рor A 0.60 0.20 0.20 B 0.75 0.15 0.10 C 0.60 0.25 0.15 D 0.50 0.20 0.30 The estimated profit/loss under different states of demand may be taken as under. Products Profit or Lo: Good Satisfactory Рoor A 40,000 10,000 1,100 B 40,000 20,000 |-7,000 C 50,000 15,000 |-8,000 D 40,000 18,000 15,000 Prepare expected value table and advice the company about the choice of the product.

Jun 10, 2022

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A manufacturing company is faced with the problems of choosing four products to manufacture. The potential demand for each product may turn out to be good, satisfactory, or poor. Probabilities for...

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