| 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.
Looking for Plagiarism free Answers for your college/ university Assignments.
Recent Solved Questions
- HRM09105: The purpose of this essay is to evaluate and reflect on concepts of leadership from both an academic and practitioner perspective: Leadership in Organisations Essay, ENU
- TSL571e: You are to submit the end-of-course assignment ECA in exactly the same manner as your tutor-marked: Academic Discourse: English in a Global Context Assignment, SUSS
- Critically evaluate the Wirecard scandal and case studies, define and explain: Master of Business Administration Assignment, JCU
- Discuss his thinking about routine care and transitions and carry ingoutactivities for the child arenprior: Bachelor of Early Childhood Education with Minor Assignment, SUSS
- 300MKT: The final complete project is the culmination of your independent research study: Advanced Marketing Study Course Work, CU
- Explain the relationship between the learning environment and the role of an educator: Bachelor of Early Childhood Education with Minor Assignment, SUSS
- CSCI312: Consider the following conceptual schema of an operational database owned by a multinational real estate company: Big Data Management Assignment, UOW
- SMO101: You may also wish to discuss these in tutorials, or online with your fellow students in the discussion forum: Sustainable Maritime Operations Access Course Coursework, MLA College
- PSS201: Define the concept of research ethics and Discuss the ethical principles that should be adhered to when doing research with indigenous communities: Criminological Theories and Intervention Assignment, SUSS
- FIN312: Draw the payoff diagrams of portfolios 1 and 2 on the same figure, ignoring any transaction costs: Mathematics and Programming for FinTech Assignment, SUSS