Quantitative Decision Making Essay Example | Topics and Well Written Essays - 1000 words

Quantitative Decision Making - Essay Example therefore, the expected respect of producing the platforms commercially is 17,000.We have evaluated the option of conducting further interrogation to make a more knowledgeable decision. establish on our previous experience we know that the enquiry report could either predict high or starting time gross revenue or could be inconclusive. There is previous data to prove that the look into reports do not always accurately predict sales. afterwards working out the probability of high and low sales found on the likely pull up stakes of the grocery store research and the probability of it being accurate, we score that... There are three routes that we sess take. 1. Decide to produce platforms without market research2. Conduct market research to decide way forward3. Abandon commercialisation of the platformThe viability of the project depends on the motivation for the product post commercialisation. Given our past experience with launch es of similar products, we know that the probability of high sales of such products is 30%.Our assessment of the profits from this project in case of high sales is 150,000. If the get for the product is low, we stand to loose 40,000. Therefore, the expected value of producing the platforms commercially is 17,000.We have evaluated the option of conducting further research to make a more knowledgeable decision. Based on our previous experience we know that the research report could either predict high or low sales or could be inconclusive. There is previous data to prove that the research reports do not always accurately predict sales. After working out the probability of high and low sales based on the likely result of the market research and the probability of it being accurate, we realize that if we decide to go ahead and produce platforms based on market research, the expected value of the project will be 22,001. Therefore, the cost of the research can be valued at 5001. If the m arket research report predicts low sales and we do not produce the platforms, we would have incurred a cost of researchThe following factors need to be taken into estimate while deciding whether to produce or abandon the platforms project before or after conducting research Expected value of producing the platforms without research - 17,000Expected value of producing the platforms with research -