# I need help with the Excel formula/calculation, the spreadsheet is attached

Anonymous
account_balance_wallet \$9.99

### Question Description

This assignment has two cases. The first case is on expansion strategy. Managers constantly have to make decisions under uncertainty. This assignment gives students an opportunity to use the mean and standard deviation of probability distributions to make a decision on expansion strategy. The second case is on determining at which point a manager should re-order a printer so he or she doesn't run out-of-stock. The second case uses normal distribution. The first case demonstrates application of statistics in finance and the second case demonstrates application of statistics in operations management.

Write a 1,050-word report based on the Bell Computer Company Forecasts data set and Case Study Scenarios.

Case 1: Bell Computer Company

• Compute the expected value for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of maximizing the expected profit?
• Compute the variation for the profit associated with the two expansion alternatives. Which decision is preferred for the objective of minimizing the risk or uncertainty?

Case 2: Kyle Bits and Bytes

• What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?
• Write in APA format

### Unformatted Attachment Preview

Purchase answer to see full attachment

Tutor_Booth
School: Duke University

kindly let me know if you have any question, thank you:)

Low
Demand Medium
High
Expected Profit (\$1000s)

Medium-Scale
Large-Scale
Expansion Profits
Expansion Profits
Annual
Annual
Profit
Profit
(\$1000s)
(\$1000s)
P(x)
P(x)
50
20%
0
20%
150
50%
100
50%
200
30%
300
30%
145

140

Risk Analysis for Medium-Scale Expansion
Annual Profit
(x)
Probability
P(x)
(x - µ)2 (x - µ)2 * P(x)
Demand \$1000s
(x - µ)
Low
50
20%
-95
9025
1805
Medium
150
50%
5
25
12,5
High
200
30%
55
3025
907,5
2
σ =
2725
σ = 52,20153254
Risk Analysis for Large-Scale Expansion
Annual Profit
(x)
Probability
P(x)
(x - µ)2 (x - µ)2 * P(x)
Demand \$1000s
(x - µ)
Low
0
20%
-140
19600
3920
Medium
100
50%
-40
1600
800
High
300
30%
160
25600
7680
2
σ =
12400
σ = 111,3552873

Running head: DECISION MAKING UNDER UNCERTAINTY

Decision making under uncertainty
Name
Institution
Date

DECISION MAKING UNDER UNCERTAINTY

Decision-making process entails identification of opportunities and risks and selecting the
best choice of action among all alternatives. Managers can make decisions under conditions of
certainty, conditions of risk and/or conditions of uncertainty. Under certainty, the managers have
adequate information and they know exactly how the outcomes will be. The manager has clarity
of the situation, knows the resources he needs, and the time within which the outcomes will
occur. Moreover, the best alternative and solution to the problem may be readily available due to
previous experience. Under conditions of risk, the decision maker is provided with likelihoods of
events and expected outco...

flag Report DMCA
Review

Anonymous
awesome work thanks

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors