Statistics Case Study

Bell_Computer_Company_Case1.xlsx

Case 1

		Medium-Scale		Large-Scale
		Expansion Profits		Expansion Profits
		Annual Profit ($1000s)	P(x)	Annual Profit ($1000s)	P(x)	Write a 1,050-word report based on the Bell Computer Company Forecasts data set and Case Study Scenarios.
Demand	Low	50	20%	0	20%
	Medium	150	50%	100	50%	Include answers to the following:
	High	200	30%	300	30%
						Case 1: Bell Computer Company
Expected Profit ($1000s)						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?
Risk Analysis for Medium-Scale Expansion
Demand	Annual Profit (x) $1000s	Probability P(x)	(x - µ)	(x - µ)2	(x - µ)2 * P(x)	Case 2: Kyle Bits and Bytes
Low	50	20%				What should be the re-order point? How many HP laser printers should he have in stock when he re-orders from the manufacturer?
Medium	150	50%
High	200	30%				Format your assignment consistent with APA format.
				σ2 =
				σ =
Risk Analysis for Large-Scale Expansion
Demand	Annual Profit (x) $1000s	Probability P(x)	(x - µ)	(x - µ)2	(x - µ)2 * P(x)
Low	0	20%
Medium	100	50%
High	300	30%
				σ2 =
				σ =