Activity 26 Module 2 Problems Complete The Following
Activity 26 Module 2 Problemscomplete The Following Problems And Su
Complete the following problems and submit the results in either a Microsoft Word document or a Microsoft Excel spreadsheet. If you choose to use an Excel spreadsheet, place each problem on a separate sheet and label the tab with the problem number. Save your document with a descriptive file name, including the assignment and your name.
Sample Paper For Above instruction
Problem 2-1: Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has increased his annual salary significantly. He is now considering purchasing additional equipment due to competition, with options documented in a table showing equipment types and their payoffs under favorable and unfavorable market conditions.
Given Ken’s optimism and the probabilities of market conditions (75% favorable, 25% unfavorable), determine the decision model suited for this problem, identify the optimal decision, and assess how much lower the payoff of $300,000 for the Sub 100 with a favorable market would need to be for Ken to reconsider his choice. This problem involves decision analysis under uncertainty, with expected monetary value (EMV) as a possible approach.
Problem 2-2: Mickey Lawson considers investing his inheritance into one of three investment options: stocks, bonds, or CDs. The payoff table indicates profits in both good and poor economic conditions, with each scenario's probability specified. Determine which investment maximizes expected profit, the value of perfect information, develop an opportunity loss table, identify the decision that minimizes expected opportunity loss, and compute the minimal expected opportunity loss.
Problem 2-3: Allen Young has been successful in stock investments but harbors concerns about the market’s future. He must decide whether to invest $10,000 in stocks or a CD, with returns depending on market conditions (good, fair, bad) and their probabilities. He is contemplating subscribing to a newsletter that predicts market conditions more accurately. Formulate a decision table, analyze the best decision, assess the maximum willingness to pay for the newsletter, and evaluate how a change in the expected return for a good market from 15% to 12% impacts the valuation of the newsletter.
Problem 2-4: Brilliant Color must decide how many cases of BC-6 to stock weekly, with profits and costs associated with sales and leftovers, along with probabilities for different sales volumes. Build a decision table including conditional values and probabilities, recommend an optimal stocking quantity, and consider how developing a stabilizing ingredient that eliminates waste would alter the decision.
In addition, the document includes multiple-choice questions related to healthcare professionals' roles, health policies, patient safety, health insurance, and healthcare systems, requiring brief but informed responses. These questions assess understanding of healthcare terminology, legislation (e.g., ACA, HIPAA, Medicare), professional responsibilities, and healthcare ethics.