Using the expected value approach, what decision do you recommend?

Alexander Industries is considering purchasing an insurance policy for its new office building in St. Louis, Missouri. The policy has an annual cost of $10,000. If Alexander Industries doesn’t purchase the insurance and minor fire damage occurs, a cost of $100,000 is anticipated; the cost if major or total destruction occurs is $200,000. The costs, including the state-of-nature probabilities, are as follows:

a. Using the expected value approach, what decision do you recommend?

b. What lottery would you use to assess utilities? (Note: Because the data are costs, the best payoff is $0.)

c. Assume that you found the following indifference probabilities for the lottery defined in part (b). What decision would you recommend?

find the cost of your paper

What is the optimal profit and what are the optimal number of Top Lathes and Big Presses?

King City Inc. manufactures machine tools. The production planner who oversees the production of two of King City’s machines needs to determine how many of each to produce this month…..

Formulate and solve the nurse scheduling problem as an integer program for one day for the data given below.

Hospital administrators must schedule nurses so that the hospital’s patients are provided adequate care. At the same time, careful attention must be paid to keeping costs down. From historical records,….

Solve the model formulated in part a. What is the minimal amount of trim loss?

STAR Co. provides paper to smaller companies with volumes that are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill….