For which one of the following situations would Kendall’s tau be appropriate? a) The Mohs scale rates the hardness of minerals. If one mineral can scratch another, it is judged….
Compute the EV for each alternative product (decision).
Automobile Production. An automobile company is deciding which cars to produce. The company has a choice between two models: a high-end model selling at $45,000, and a moderately priced model selling at $25,000. The payoff table shows monthly sales for each model. Based on past experience, the automobile company makes the following assumption about the demand for the high-end car. Demand will be low, moderate, or high with probabilities 0.4, 0.4, and 0.2, respectively. The company also assumes that if demand is low for the high-end car, it will be higher for the moderately priced car.
a) Compute the EV for each alternative product (decision).
b) Compute the SD for each decision.
c) Compute the CV and RRR for each decision.
d) Which car would you produce and why?