Chat with us, powered by LiveChat An international manufacturer of electronic products is contemplating introducing a new type of compact disk player. After some analysis of the market, the president of the company conclud | Wridemy

An international manufacturer of electronic products is contemplating introducing a new type of compact disk player. After some analysis of the market, the president of the company conclud

An international manufacturer of electronic products is contemplating introducing a new type of compact disk player. After some analysis of the market, the president of the company conclud

An international manufacturer of electronic products is contemplating introducing a new type of compact disk player. After some analysis of the market, the president of the company concludes that, within 2 years, the new product will have a market share of 5%, 10%, or 15%. The subjective probabilities of these events are .15, .45, and .40, respectively. If the product captures only a 5% market share, the company will lose $28 million. A 10% market share will produce a $2 million profit, and a 15% market share will produce an $8 million profit. If the company decides not to begin production of the new compact disk player, there will be no profit or loss. Based on the expected value decision, what should the company do?

b. The owner of a clothing store must decide how many men’s shirts to order for the new season. For a particular type of shirt, she must order in quantities of 100 shirts. If she orders 100 shirts, her cost is $10 per shirt; if she orders 200 shirts, her cost is $9 per shirt; and if she orders 300 or more shirts, her cost is $8.50 per shirt. Her selling price for the shirt is $12, but any shirts that remain unsold at the end of the season are sold at her famous “half-price, end-of-season sale.” For the sake of simplicity, she is willing to assume that the demand for this type of shirt will be 100, 150, 200, or 250 shirts. Of course, she cannot sell more shirts than she stocks. She is also willing to assume that she will suffer no loss of goodwill among her customers if she understocks and the customers cannot buy all the shirts they want. Furthermore, she must place her order today for the entire season; she cannot wait to see how the demand is running for this type of shirt.

a. Construct the payoff table to help the owner decide how many shirts to order.

b. Draw the decision tree.

    Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

    Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

    Do you need an answer to this or any other questions?

    About Wridemy

    We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

    How It Works

    To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

    Are there Discounts?

    All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

    Hire a tutor today CLICK HERE to make your first order

    Related Tags

    Academic APA Writing College Course Discussion Management English Finance General Graduate History Information Justify Literature MLA