Critical Thinking Essay: Reliability And Decision Theory
I need your help for writing essay (4 pages not including the cover page and references page)
The topic as below:
The supplement to Chapter 5 in your textbook describes and develops several decision trees.Address the following requirements:
- Develop a decision tree for the case described.
- Explain the process of developing a decision tree, draw the decision tree (include the decision tree in an appendix showing chance nodes, probabilities, outcomes, expected values, and net expected value).
- Defend your final decision based on your decision tree.
Case for consideration—An operations manager for a cereal producer is faced with a choice of:
- A large-scale investment (A) to purchase a new cooker which could produce a substantial pay-off in terms of increased revenue net of costs but requires an investment of 3,750,000 Saudi Riyal. After extensive market research it is thought that there is a 40% chance that a pay-off of 9,375,000 Saudi Riyal will be realized, but there is a 60% chance that it will be only 3,000,000 Saudi Riyal.
- A smaller scale project (B) to refurbish an existing cooker. At 1,875,000 Saudi Riyal, this option is less costly but produces a lower pay-off. Again, extensive research data suggests a 30% chance of a gain of 3,750,000 Saudi Riyal but a 70% chance of it being only 1,875,000 Saudi Riyal.
- Continuing the present operation without change (C) which cost nothing, but produces no pay-off.
-Write an essay that includes an introduction paragraph, the essay’s body, and a conclusion paragraph to address the assignment’s guide questions. Do not address the questions using a question-and-answer format.
-APA style should be used-Font will be: Times roman 12, and double space should be between lines
-At least 3-4 scholarly, peer-reviewed journal articles will be used as references (including the below two).
– Kaminski, B., Jakubczyk, M., & Szufel, P. (2018). A framework for sensitivity analysis of decision trees. Central European Journal of Operations Research, 26(1), 135–159.
– Nor, S. H. S., Ismail, S., & Yap, B. W. (2019). Personal bankruptcy prediction using decision tree model. Journal of Economics, Finance & Administrative Science, 24(47), 157–172.