There are 6 discussion questions about decision analysis. Many of the questions can be answered with a few words such as #1 is "maximin so corporporate bonds," (300 words)© BrainMass Inc. brainmass.com October 24, 2018, 10:03 pm ad1c9bdddf
1. Sue Pansky, a retired grade-school teacher, is considering investing in Starting Right. She is very conservative and is a risk avoider. What do you recommend?
Since Sue is a risk avoider and is very conservative, I would recommend investing in corporate Bonds. The reason is that her investment of $30,000 is secure to the extent of $20,000 as this amount has been guaranteed by Julia. On the other hand she gets a steady income at the rate of 13% per annum
2. Ray Cahn, who is currently a commodities broker, is also considering an investment, although he believes that there is only an 11% chance of success. What do you recommend?
Since, Ray Cahn believes that there is only 11 percent of success, in case of preferred stocks his expected returns is 11% X 4 = 44% plus 50% = 94%. In case of common stocks his expected returns is only 88%. So, Ray Cahn should go in for corporate bonds. This is the choice recommended ...
This explanation provides you a comprehensive argument relating to Decision Analysis
Linear Programming, Queueing Analysis, Simulations, Decision Analysis and Forecasting
A) What are 2 possible ways to improve the service rate of a waiting line operation?
B) Briefly describe how simulation could be used to assist decision makers in regards to new product development?
C) Give an example of how Decision analysis could be used to determine an optimal strategy? Briefly describe several decision alternatives a decision maker would be faced with and possible uncertain future events to consider.
D) What is the difference between quantitative forecasting methods and qualitative forecasting methods?
E) Under what circumstances would it be more appropriate to use quantitative rather than qualitative forecasting methods?
F) Give an example of a situation when using quantitative forecasting would be appropriate?View Full Posting Details