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Amine Bekki

ID: 201404262

Assignment 3

Problem 1: ex 5.13:

We have 3 options

1. Low techa. 0.3: 45000 ! "200000 # 0.55$ % 155000&. 0.4: 45000 ! "200000 # 0.50$ % 145000c. 0.3: 45000 ! "200000 # 0.45$ % 135000

'o the ()* +o, -ow tech is : 0.3#155000!0.4#145000!0.3#135000%145000

2. '/&cont,acta. 0.:65000 ! "200000 # 0.45$ % 155000&. 0.2:65000 ! "200000 # 0.40$ % 145000c. 0.1:65000 ! "200000 # 0.35$ % 135000

'o the ()* +o, s/& cont,act is: 151000

3. igh techa. 0.:5000 ! "200000 # 0.40$ % 155000&. 0.1:5000 ! "200000 # 0.35$ % 145000

'o the ()* +o, high tech is: 154000

'o we choose the -ow techno-og metho &eca/se it has the -owest estimate cost o+145000

Problem 2: Ex 5.15:

We have 3 choices: p,o/ce the e-egant the e-/e o, o nothing

1. e-egant

1.a: 0.5: goo ma,ket: 400#12535000%15000

1.&: 0.5 : &a ma,ket: 300#035000%7000'o ()* +o, e-egant is : 3500

2. e-/e:2.a: 0.5: goo ma,ket : 500#10035000%150002.&: 0.5 : &a ma,ket: 400#035000%000'o ()* +o, e-/e is : 4000

3. o nothing: 0

so we ecie to take the e-/e option &eca/se it has the highest ()*:4000

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Problem 3: Faraya:

8he 9na- answe, is to &/ on- one -i+t the ep-anation is &e-ow.

We wi-- go a&o/t this ecision & evising a ecision t,ee.

We have the ,even/e at capacit o+ eve, -i+e is : 14 weeks#as#250p-aces#20%40000

We have 3 choices: &/ 1 -i+t 2 -i+ts an o nothing. In the 9,st 2 choices we have 3

economic conitions. Ba no,ma- an ,ea-- goo.

We sho/- ca-c/-ate the ()* +o, each choice

1 +o, o nothing the ()* is 02 +o, &/ 1 -i+t: we have 3 sena,ios

2.a &a econom: "0.3$: p,o9t % ,even/e cost % 0;#40000 "200000 !

50000$ % 11000

2.& no,ma- "0.5$: p,o9t % 100;#40000 250000 % 240000

3.c ,ea-- goo "0.2$: p,o9t % 100;#40000 250000 % 240000

'o ()* +o, &/ing 1 -i+t % 0.3#11000!0.5#240000!0.2#240000 % 225300

3: &/ing 2 -i+ts: we have 3 sena,ios

3.a : &a econom: p,o9t % "0;#40000!0;# 40000$ " 2#200000 ! 0000$ %

4000

3.&: no,ma- econom: p,o9t % "100;#40000!50;# 40000$ " 2#200000 !

0000$ %245000

3.c: ,ea-- goo: p,o9t% "100;#40000!0;# 40000$ " 2#200000 ! 0000$

%441000

'o ()* +o, &/ing 2 -i+ts is : 0.3#4000!0.5#245000!0.2#441000%16000

'o we pick the highest ()* which is to &/ on- 1 -i+t as its ()* is highe, than the ()* o+

&/ing 2 -i+ts an highe, than the ()* o+ oing nothing