1. -Decision Tree
A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities:
Cost of land: $2 million.
Probability of rezoning: .60.
If the land is rezoned, there will be additional costs for new roads, lighting, and so on, of $1 million.
If the land is rezoned, the contractor must decide whether to build a shopping center or 1,500 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 70 percent chance that she can sell the shopping center to a large department store chain for $4 million over her construction cost, which excludes the land; and there is a 30 percent chance that she can sell it to an insurance company for $5 million over her construction cost (also excluding the land). If, instead of the shopping center, she decides to build the 1,500 apartments, she places probabilities on the profits as follows: There is a 60 percent chance that she can sell the apartments to a real estate investment corporation for $3,000 each over her construction cost; there is a 40 percent chance that she can get only $2,000 each over her construction cost. (Both exclude the land cost.)
If the land is not rezoned, she will comply with the existing zoning restrictions and simply build 600 homes, on which she expects to make $4,000 over the construction cost on each one (excluding the cost of land).
Draw a decision tree of the problem and determine the best solution and the expected net profit.
A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?
This question has already been tackled by one of our writers and a good grade recorded. You can equally get high grades by simply making your order for this or any other school assignment that you may have.
Every Student Buys Essays from us, here is why!
Pressed for time to complete assignments or when you feel like you cannot write, you can purchase an
essay on our website. Some students also want model papers to use as samples when revising or
writing. There are also students who approach our essay writing service to beat deadlines. We handle
every type of homework, assignment, and academic writing tasks. You can buy college essays and other
assignments here. At a glance, here are some reasons students prefer our website.
100% Original Essays and Papers
You can be sure that you are getting a paper that is custom written based on your instructions. We do
not sell papers that are pre-written. Instead, we write every essay from scratch. When you say “write my
essay,” we respond by giving you a paper that is 100% original and free of any plagiarism. The essays you
purchase from us have never been sold anywhere.
Flexible & Affordable Prices
It does not cost a fortune to get academic writing help on our website. If you have a question from class,
place an order, get a discount, and get cheap essay writing services. What you see as the price is what
you pay for. There are no any hidden charges. If you need urgent papers, they might cost a little more,
but the price is worth the quality you get in the end. Hire a professional academic writer beginning from
$13 a page.
Anonymity, Privacy, and Confidentiality
No one will ever know that you purchased an essay or assignment from our website. The essays you buy
from us are written by experts. Your data is only used to coordinate the essay writing services you get.
No one can access your personal information and data. Go ahead and order an essay from our website.
It is safe, secure, and convenient.