Statistics

Paper details: Please answer the following questions. This problem is intended that the student demonstrates how to solve a diagram of this kind and what it would take the final decision according to the results. Use as a valuable reference the first diagram in Chapter 1 and once you're done, you should answer the questions listed later. Specific data Problem: What will be the price that must be assigned to a product so that the company obtains the largest gain, according to the following data: FACT 1: The company will analyze two strategies: Strategy A: Setting a High Price Strategy B: Setting a Low Price FACT 2: Reaction Competition The Strategy A, competition can set a high price with a probability of 60% and a low price with a probability of 40%. Strategy in the B competition can set a high price with a probability of 50% and a low price with a probability of 50%. FACT 3: State of the Economy For each of the 4 branches that emerged in the previous column, appear three states or situations in the economy with a certain probability of occurrence. Bonanza 30% Normal 40% Recession 30% FACT 4: Probability This column will be calculated by the student. FACT 5: Earnings Net income would get the company are in order the following: $ 130.000 95,000 50,000 120,000 90,000 40,000 110.000 80,000 35,000 100,000 70,000 25,000 FACT 6: Expected Profit This column will be calculated by the student. Probability column note in perfect order the 12 values you calculated. first example called "decisional tree and Price Analysis". Make the diagram, calculating the probability and write in perfect order the 12 values you calculated. and answer the following questions: 1) What will be the price to be assigned to a product so that the company obtains the largest gain according to the data? 2) What will be the expected gain?