Electronic Timing System for Olympics Case Assignment
WE WRITE ESSAYS FOR STUDENTS
Tell us about your assignment and we will find the best writer for your project
Write My Essay For Me
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Electronic Timing System for Olympics Case Assignment
Read Case 6.3: Electronic Timing System for Olympics on pages 275-276 of the textbook. For this assignment, you will assess and use the correct support tool to develop a decision tree as described in Part “a” of Case 6.3. Analyze and apply the best decision making process to provide answers and brief explanations for parts “a”, “b”, “c”, and “d”. The answers and explanations can be placed in the same Excel document as the decision tree.
- Develop a decision tree that can be used to solve Chang’s problem. You can assume in this part of the problem that she is using EMV (of her net profit) as a decision criterion. Build the tree so that she can enter any values for p1, p2, and p3(in input cells) and automatically see her optimal EMV and optimal strategy from the tree.
- If p2 = 0.8 and p3 = 0.1, what value of p1 makes Chang indifferent between abandoning the project and going ahead with it?
- How much would Chang benefit if she knew for certain that the Olympic organization would guarantee her the contract? (This guarantee would be in force only if she were successful in developing the product.) Assume p1= 0.4, p2= 0.8, and p3 = 0.1
- Suppose now that this is a relatively big project for Chang. Therefore, she decides to use expected utility as her criterion, with an exponential utility function. Using some trial and error, see which risk tolerance changes her initial decision from “go ahead” to “abandon” when p1= 0.4, p2= 0.8, and p3 = 0.1.
In your Excel document,
- Develop a decision tree using the most appropriate support tool as described in Part a.
- Calculate the value of p1 as described in Part b. Show calculations.
- Calculate the possible profit using the most appropriate support tool as described in Part c. Show calculations.
- Calculate risk tolerance as described in Part d. Show calculations.
Case 6.3
Sarah Chang is the owner of a small electronics company. In six months, a proposal is due for an electronic timing system for the next Olympic Games. For several years, Chang’s company has been developing a new microprocessor, a critical component in a timing system that would be superior to any product currently on the market. However, progress in research and development has been slow, and Chang is unsure whether her staff can produce the microprocessor in time. If they succeed in developing the microprocessor (probability p1), there is an excellent chance (probability p2) that Chang’s company will win the $1 million Olympic contract. If they do not, there is a small chance (probability p3) that she will still be able to win the same contract with an alternative but inferior timing system that has already been developed.
If she continues the project, Chang must invest $200,000 in research and development. In addition, making a proposal (which she will decide whether to do after seeing whether the R&D is successful) requires developing a prototype timing system at an additional cost. This additional cost is $50,000 if R&D is successful (so that she can develop the new timing system), and it is $40,000 if R&D is unsuccessful (so that she needs to go with the older timing system). Finally, if Chang wins the contract, the finished product will cost an additional $150,000 to produce.
- Develop a decision tree that can be used to solve Chang’s problem. You can assume in this part of the problem that she is using EMV (of her net profit) as a decision criterion. Build the tree so that she can enter any values for p1, p2, and (in input cells) and automatically see her optimal EMV and optimal strategy from the tree.
- If p2 = 0.8 and p3 = 0.1, what value of p1 makes Chang indifferent between abandoning the project and going ahead with it?
- How much would Chang benefit if she knew for certain that the Olympic organization would guarantee her the contract? (This guarantee would be in force only if she were successful in developing the product.) Assume p1 = 0.4, p2 = 0.8, and p3 = 0.1.
- Suppose now that this is a relatively big project for Chang. Therefore, she decides to use expected utility as her criterion, with an exponential utility function. Using some trial and error, see which risk tolerance changes her initial decision from “go ahead” to “abandon” when p1 = 0.4, p2 = 0.8, and p3 = 0.1.
The post Electronic Timing System for Olympics Case Assignment appeared first on Terms Broker.
DO MY HOMEWORK NOW!Write my Essay. Premium essay writing services is the ideal place for homework help or essay writing service. if you are looking for affordable, high quality & non-plagiarized papers, click on the button below to place your order. Provide us with the instructions and one of our writers will deliver a unique, no plagiarism, and professional paper.
Get help with your toughest assignments and get them solved by a Reliable Custom Papers Writing Company. Save time, money and get quality papers. Buying an excellent plagiarism-free paper is a piece of cake!
All our papers are written from scratch. We can cover any assignment/essay in your field of study.
