Charles River Jazz Festival must choose whether to squeeze a minimized plate (CD) of Friday's jazz execution available to be purchased on Saturday and Sunday. The thought to squeeze CDs is novel, so there is significant vulnerability about how open clients will be. The celebration must choose whether to squeeze CDs just on Friday or pay for an alternative to squeeze them on Friday and Saturday. A reenactment is performed to help gauge Saturday and Sunday CD request. One info of the reproduction is a relapse relating Saturday and Sunday participation to Friday participation and weekend climate conditions. The case shows how a few distinctive quantitative methods - choice examination, relapse, and reproduction - can be coordinated in an investigation of an administrative choice issue. Gives hone in choice examination; represents utilization of reenactment and relapse in getting likelihood gauges.
· Desicion Tree
· Monetary Benefit
· Expected Profit Calculations
1. Using Buzz's probability estimate, what is the probability that demand for compact disks will be exactly 4,000 compact disks during the festival, i.e., over Saturday and Sunday combined?
2. Draw an appropriate decision tree for Buzz's problem, i.e., to determine how many compact disks CRJF should press on Friday. Be sure to include probabilities and the value of the endpoints.
3. How many CDs should Charles River Jazz Festival press on Friday? Use maximization of Expected Monetary Value as a criterion.
4. What is the Expected Monetary Value of the best plan in Question 3?