| University | National University of Singapore (NUS) |
| Subject | Data Analytics |
- Max Burg is considering setting up a restaurant. If he opens it in Castle Street, he believes there is an equal chance of making a profit of £150,000 or £100,000 in the first year, depending on whether the trade is high or low. If, however, he opens a site on the High Street, then he believes he has a 70% chance of making a profit of £150,000 and a 30% chance of making a profit of £100,000 in the first year. Where should he open the restaurant if he wishes to maximize his expected profit over the first year, and what is the expected profit from his chosen course of action?
- Max is concerned about the possibility of the UK being in recession by the time the restaurant would be opened. He thinks there is a 40% chance of recession. If there is no recession, then the situation is as described in part. However, if there is a recession, then he estimates that the Castle Street restaurant would result in £20,000 profit or £30,000 loss over the first year with equal probabilities. At the High Street site, if there is a recession, he estimates he would have a 40% chance of making a profit of £100,000 and a 60% chance of losing £50,000 in the first year. Draw a decision tree for this problem. Using your decision tree determine if Max should open a restaurant if he wants to maximize his expected profit over the first year, and if so, where and what is the expected profit from this chosen course of action?
- Discuss the limitations of the decision analysis performed and whether the maximization of expected profits is a sensible criterion for Max to use when making his decision?
Stuck with a lot of homework assignments and feeling stressed ? Take professional academic assistance & Get 100% Plagiarism free papers
Get Help By Expert
Can I hire someone to write my assignment? Sure, hire an expert assignment writer from Singapore assignment who is ready 24/7 to assist you. Our writer will write your Data Analytics Assignment in a 100% plagiarism-free & well-formatted manner at a nominal price. You can also acquire our experts to get the best online assignment help.
Answer
Looking for Plagiarism free Answers for your college/ university Assignments.
Recent Solved Questions
- A3740C Complementary and Alternative Medicine Graded Assignment
- A2859C Pharmacotherapeutics I Graded Assignment Brief 2026
- A3750C Dietary Supplements Graded Assignment Individual Report 2026
- Introduction to Accounting Assessment Questions | SMU
- B2079C Job and Labour Market Analysis Coursework Assessment AY2025 Term 4
- B2089C Career Development and Counselling Coursework Assessment AY2025
- PSB501EN Mechanical Engineering Systems Assessment Brief | CU
- 303SD Structural Steel Design Project Brief Report SEM 2 | Ngee Ann Polytechnic
- Security Risk Management Individual Project Assignment | SIT
- 63MBID Information Management and Digital Intelligence Coursework | UNAM