question archive good eveningI attend gcu - i am taking ecn-601 and i am writing a paper for chapter 17 the questions are describe a decision your company has made when facing uncertainity- compute the expected costs and benefits and compute the profit consquences
good eveningI attend gcu - i am taking ecn-601 and i am writing a paper for chapter 17 the questions are describe a decision your company has made when facing uncertainity- compute the expected costs and benefits and compute the profit consquences
Subject:EconomicsPrice: Bought3
good eveningI attend gcu - i am taking ecn-601 and i am writing a paper for chapter 17 the questions are
describe a decision your company has made when facing uncertainity- compute the expected costs and benefits and compute the profit consquences.
does the professor want real numbers in the answer of is the below ok - if not how would I provide numbers
A decision that my company has made when facing uncertainty was whether or not to upgrade the USA offices software system like the system the offices in Europe have so we could stay ahead of the competition on the street and meet client's changing technological needs.
According to Froeb, L. M., McCann, B. T., Shor, M., & Ward, M. R. (2016) instead of making decisions the maximize expected costs it is better to calculate what the minimum expected error costs would be.
Below I have illustrated that upgrading the software system to the same one we have in the European offices would be profitable in the USA.
Truth
Profitable
Not Profitable
(Hypothesis True)
Hypothesis False
Upgrade software (Accept Hypothesis)
Correct Decision
Type II Error
Decision
Do not upgrade software (Reject Hypothesis)
Type 1 Error
Correct Decision
The rows represent the two alternatives and the columns represent the uncertainty. Type I error represents the company did not upgrade the software system but it was profitable. Type II represents the company upgraded the software system and it was not profitable.
