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Quantitative Decision Making

I need help with this - just not understanding it and I need a reference for upcoming assignments and eventually the exam(s).

I need the solution(s) to be as thorough & expanatory as possible.

Thanks so much~!

(See attached file for full problem description)

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1. Men and women arrive as couples at a fitness club. Men's weights are known to be normally distributed with a mean of 180 and a standard deviation of 25 pounds. Women's weights are also normally distributed with a mean of 135 and a standard deviation of 15 pounds. Use Monte Carlo simulation to determine:

(1) The average combined weight of the two partners.
(2) The average weight of the lighter of the partners.
(3) The average difference between the weights of the two partners.
(4) The percentage of time that the woman is the heavier individual.

Be certain to use sufficient replications (i.e., sample size) so that you are fairly sure of your answers.

Assuming the parameters given are correct, suggest several reasons why the answers suggested by your simulation might not be the same as data from actual on-site observations?

2. The following payoff table provides profits based on various possible decision alternatives and various levels of demand.

States of Nature
Demand
Alternatives Low Medium High
Alternative 1 80 120 140
Alternative 2 90 90 90
Alternative 3 50 70 150

The probability of a low demand is 0.4, while the probability of a medium and high demand is each 0.3.

(a) What decision would an optimist make? Why?
(b) What decision would a pessimist make? Why?
(c) What decision would you make? Why?
(c) What is the highest possible expected monetary value?
(d) Calculate the expected value of perfect information for this situation.
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(See attached file for full problem description)

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