MM 305 PUG Business Statistics and Quantitive Analysis Essay

Content Type

User Generated

User

fznjq

Subject

Mathematics

Course

MM 305

School

Purdue University Global

Department

Description

Unformatted Attachment Preview

Unit 3 Discussion Example – Decision, Decisions, Decisions! Unit 3 Discussion Example – Main Post Main Post: For the Unit 6 Discussion Board, you will compose a reflective essay to address the following questions: Scenario: You are a business owner faced with an important decision that could potentially be very lucrative. Keep in mind the “Six Steps in Decision Making” as you set up your decision analysis. See the DB Starter video in the Unit 3 LiveBinder. 1. 2. 3. 4. What is the problem and objective of this decision? Identify at least 3 alternatives and 3 states of nature. Create a decision table in Excel. Example tables can be found in Unit 3 Live Binders. Identify the potential payoff/losses for each alternative and state of nature and include in your decision table. 5. Choose two decision strategies and determine the best alternative: (Clearly state the best alternative for each strategy.) • Optimistic • Pessimistic • Criterion of Realism (Hurwicz) 6. Why did you choose the two strategies? What are the results of the best alternative? What is your final decision? After you have contemplated the questions above, draft your reflective essay. Every piece of writing should have an introduction, body, and conclusion. A good way to plan this particular reflective essay is to write an introduction to the essay. Next, write at least three body paragraphs and address each of the points listed above. End your essay with a conclusion paragraph tying all of your ideas together. The essay should be at least five paragraphs in length. ****************************************************************************** ************ 1. I am the business owner for my personal juice/smoothie business, “The New Green!” I have smoothie carts in various locations around town. Business has been going very well and I am considering expanding my business to our neighboring town. 2. Three alternatives would be: 1. Expand fully to neighboring town with 3 new smoothie carts 2. Pilot the expansion with just 1 new smoothie cart 3. Stay status quo – do not expand (Make the customers come to me!) Three states of nature would be: 1. Serious demand for good nutrition ☺ 2. Moderate demand for good nutrition  3. Nobody cares about good nutrition  3 & 4. On a typical “awesome” day, I sell about $250 in smoothies per cart and it costs about $100 for electricity and staffing. So, a net income of about $150 per day. On a typical “moderate” day, I sell about $150 in smoothies per cart and it still costs about $100 for electricity and staffing. So, a net income of about $50 per day. On a typical “poor” day, I sell about $50 in smoothies per cart and it still costs about $100 for electricity and staffing. So, a net loss of about $50 per day. I will set up my decision table based on the above profit/losses per smoothie cart. Awesome Nutritional Demand Moderate Nutritional Demand Poor Nutritional Demand 3 New Carts 450 150 -150 1 New Cart 150 50 -50 0 New Carts 0 0 0 5. I will choose to use the Optimistic and Criteria of Realism strategies. The Optimistic (Maximax) decision is to build 3 new carts with a possibly payoff of $450 per day. Maximax Decision Process Awesome Nutritional Demand Moderate Nutritional Demand Poor Nutritional Alternative Demand value 3 New Carts 450 150 -150 450 1 New Cart 150 50 -50 150 0 New Carts 0 0 0 0 0 Maximax 450 For the Criteria of Realism (Hurwicz), I will use a coefficient of realism of α = 0.75. As a reminder, this means that I will be 75% optimistic and 25% pessimistic – a compromise between the optimistic and pessimistic strategies. The Criteria of Realism decision is still to build 3 new carts, based upon the decision strategy's alternative value of 300. Hurwicz Criteria Decision Process = 0.75 Awesome Nutritional Demand Moderate Nutritional Demand Poor Nutritional Alternative Demand value 3 New Carts 450 150 -150 300 1 New Cart 150 50 -50 100 0 New Carts 0 0 0 0 0 Hurwicz Criteria 300 Now, I will use the above computations as a basis for composing my reflective essay. Please remember that your reflective essay should include an introduction, body, and conclusion, and of course APA formatted references.
Purchase answer to see full attachment

Explanation & Answer:

1 Essay

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Please let me know if you need anything to be changed or
addedI will be happy to carry any changes, just leave me a
message and will get back to you as soon as I canBye for now, but will be here if you need any further help

Report: Business Statistics and Quantitative Analysis,.

Business Statistics and Quantitative
Analysis,.
by HAL

General metrics
5,699

913

62

3 min 39 sec

7 min 1 sec

characters

words

sentences

reading
time

speaking
time

Writing Issues
No issues found

Plagiarism
This text hasnâ

t been checked for plagiarism

Report was generated on Friday, Apr 10, 2020, 09:14 PM

Page 1 of 7

Report: Business Statistics and Quantitative Analysis,.

Unique Words

27%

Measures vocabulary diversity by calculating the
percentage of words used only once in your
document

unique words

Rare Words

27%

Measures depth of vocabulary by identifying words
that are not among the 5,000 most common English
words.

rare words

Word Length

5

Measures average word length

characters per word

Sentence Length

14.7

Measures average sentence length

words per sentence

Report was generated on Friday, Apr 10, 2020, 09:14 PM

Page 2 of 7

Report: Business Statistics and Quantitative Analysis,.

Business Statistics and Quantitative
Analysis,.
BUSINESS STATISTICS AND QUANTITATIVE ANALYSIS 6
Running Head: BUSINESS STATISTICS AND QUANTITATIVE ANALYSIS 1

Business Statistics and Quantitative Analysis
Name
Course
Date

Business Statistics and Quantitative Analysis
Introduction
The decision making approaches and skills, helps the individuals to identify
systems of operation and also helps to choose the available alternatives
following the level of importance, the preference, and the value of the process
to the individual (Ekel, Pedrycz, & Pereira, 2019). In the business operation, the
skill of proper and ethical decision making is essential as it helps in the
Report was generated on Friday, Apr 10, 2020, 09:14 PM

Page 3 of 7

Report: Business Statistics and Quantitative Analysis,.

determination of the ow of the business operation, productively. Based on the
several steps involved in the resolution of the nal decision, the decisionmaker has the task to identify the decision effectively and analyze the
effectiveness of the implementation of the decision on the mode of business
operation (Morrison et al. 2019). However, the individual may consider other
alternatives aside from the core decision and hence weigh between the initial
idea and the observe options to clarify on the choice made. Through the
process of decision making, the business owner has to implement the decision
made as nal and later on o of the impacts of the decision made on the
operation of their business. The case study below will focus on the decisionmaking approach of a business owner in the transaction of the expansion of
their business.
In every business operation, the original idea behind the various effective
strategies and decision-making approaches are implemented to improve on the
quality products of the business and hence increased generation of revenue
and pro ts from the business activities. In the addressed case, the problem
facing the business owner points to the decision to adopt to increase the
pro tability of the business while their objective of the decision is to expand on
the geographical locations of business operation. Some of the various
alternatives available to the business owner include implementation of the
decision to expand the whole process of the business to the next location fully,
or the second alternative, starting the expansion decision gradually with one
portion of the business operation. Also, the decision-maker has the option of
failing to expand the business, to the next town, a decision which will compel
the consumers to travel to the initial location of the company. Some of the
possibilities of the operation of the business based on the three alternatives,
stand at, either the demand in the market would raise, or it would remain

Report was generated on Friday, Apr 10, 2020, 09:14 PM

Page 4 of 7

Report: Business Statistics and Quantitative Analysis,.

moderate. Also, there is a possibility that due to the failure to expand the
market, none of the consumers will reach out for the products in the initial
location.
Based on every decisive alternative for the business owner, on high product
demand days, the business owner would sell approximately $250 of the
product. In contrast, all costs amounting to probably $100, the pro t for the
day would turn out to $150, which is quite impressive. On the second possibility
of operation, the moderate demand of the business could result in a total sale
of $150 and with the deduction amounting $100. The overall pro t from the
company could turn out to $50. However, on the low turnouts of the business
operation, probably the sale would be $50, less the $100 costs of the business,
and the pro ts amounting to $50 for the day.
A table representation of the decision based on the pro ts of the business
operation.
High demand day
Moderate demand day
Low demand day
Expansion of while the business operation
450
150
-150
Expansion of a segment of the business
50
50
-50
No expansion at all

Report was generated on Friday, Apr 10, 2020, 09:14 PM

Page 5 of 7

Report: Business Statistics and Quantitative Analysis,.

0
0
0
Part 5 & 6
The optimistic and the pessimistic strategies would adequately help in the
determination of the best alternative decision to make concerning the
expansion o...