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

*label*Mathematics

*timer*Asked: Mar 26th, 2017

*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.

**Include** answers to the following:

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

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## Tutor Answer

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...

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