Math Problem Solver

In a quest to meet the anticipated increase in demand in hand sanitizer, due to Covid -19, a manufacturing business is considering ways of enhancing their manufacturing process. With their current operating structure, the business expects to make a net profit of BWP160 000 from its existing process when running at full capacity. A business development firm has been hired to analyze the business operations and found the following possible scenarios.

I. Continue to operate the existing plant and make a profit of BWP 160 000.

II. Undertake an advanced level rebranding program that would cost BWP200 000 and has an 80% chance of success. If successful, a profit of BWP500 000 is expected. If not successful a profit of BWP50 000 is expected.

III. Undertake a less extensive rebranding program costing BWP40 000 which has been given a 50% chance of success. If successful, a profit of BWP500 000 is expected, and if not successful a profit of BWP40 000 is expected.

Given this information present a decision tree and determine the most profitable course of action and comment on your findings [10]

Question 2

A marketing manager at Game Superstores has made a claim that the probability that a customer would prefer the deluxe model to the standard model of a product is 30%.

(a) What is the probability that exactly four out of 10 customers will prefer the deluxe model?[5]

(b) What is the probability that more than three out of 10 customers will prefer the standard model? [5]

(c ) What is the probability that at most two out of 10 customers will prefer the deluxe model. [5]