The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new

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The Operations Manager For A Local Bus Company Wants To Decide Whether He Should Purchase A Small Medium Or Large New 1 (57.55 KiB) Viewed 13 times

The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows: Profit Demand Low Medium 90 Small 60 High 100 Medium 40 100 120 Large -10 80 140 Demand Low Medium High 10 A 0 20 20 0 Regret Small 0 Medium 20 Large B numbers only.) (5 points each)

0 -3 ge . B ZU Complete the regret table. (Type in the numbers only.) (5 points each) A would be and B would be A A/ U If he uses the minimax regret, which size bus will he decide to purchase? (5 points) A If he feels the chances of low, medium, and high demands are 20 percent, 50 percent, and 30 percent respectively, What is the EVPI(Expected value of perfect information)? (10 points) Don't type in $. A/

30 33 A real estate agent is considering changing her cell phone plan. There are two plans to choose from. Plan A has a cost of $0.40 a minute for daytime calls and $0.18 a minute for evening calls. Plan B has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $0.35 per minute beyond that, day or evening. a) If the agent will use 150 minutes of day calls and 70 minutes of evening calls in a month, What would be the total cost of Plan A ? A and and What would be the total cost of plan B? If the agent will use the service for daytime calls only, over what range of call minutes will each plan be optimal? Plan A is optimal from zero to A/ minutes. Plan B is optimal from Az minutes onward POTO 87