Dmd Case Analysis of Making a Decision of Buying a House

Assignment Form |Course: | Data, Model and Decision | |Instructor: | Dr. Feng Haolin | |Homework: |Decision Analysis | |Name: | Group 1. Li Yuechuan/ Pankaj Malhotra/ Liang Yuan/ Wu Zhuhua/ Tan Jing/ Gu Junling | |Student ID No.: | | |Class: |11FB†¦show more content†¦In the case, structuring the problem is as below: (1) How to make our offer when there is only one bidder and multiple bidder? (2) What is Decision Node, what is the Event Node? (3) What is the probability of each event node? Analyzing the problem is as below: (1) Evaluate options and find out the best way of offers; (2) Select the best choice. Part.3 Decision Tree [pic] Chart 1 Decision Tree First of all, Debbie and George (DG) have three choices to make offer with $390,000, 400,000 and 405,000 respectively. Take offer $390,000 for example, the probability of acceptance for this offer is 0.3, whereas probability of rejection is 0.7. If it is accepted, the deal is made for $390,000. On the other hand, if it is rejected, DG will have three alternatives at second stages, which are withdraw offer, remain same offer and increase offer by 5,000 respectively. The probabilities of The EMV of these three choices are 0, 4,000 and 4,500, as calculated in the decision tree. Hence the decision F will take the highest EMV value of 4,500. Afterwards, we summarize decision E and F according to their weight, and get the EMV for event B as 5,550. Likewise, we can get EMV of event B and C as 5,300 and 3,800 respectively. Part.4 Sensitivity Analysis, From the decision tree above, the main data include two parts, the price and the percentage of acceptance, so the basic calculation is as followed:Show MoreRelatedLiquor Industry in India4974 Words   |  20 PagesWoodpecker, Power, Legend. The various IMFL brands are Legend Premium Whisky, Sunny Malt Whiskey, and Gypsy Fine Whiskey. Run is sold under the flagship of Black Fort and Gin is sold under the brand Blue Chip. * Chairman- J K Arora * Address – SOM House 23, Zone II, Maharana Pratap Nagar Bhopal – 462011 * Phone +91-755-4278827 * Email:  somindiadistilleries@somindia.in * Website:  http://somindia.in Tilaknagar Industries TI Industries which was known as The Maharashtra Sugar Mills LimitedRead MoreStudy on Customer Service Quality and Customer Satisfaction at Credit Card in the Context of Prime Bank Limited†12516 Words   |  51 Pagessale information in this business. The broad objective of the study is to draw an overall view of the satisfaction level of the credit card user of the Prime Bank Ltd. and then identify how to improve the level. The specific focuses of the study are analysis of the satisfaction level of the card users of The Prime Bank Ltd., comparing their product and service offerings with other issuers, judging cardholders’ level of satisfaction, and exploring the opportunities and competitive advantages that canRead MoreConsumer Credit12385 Words   |  50 Pagescredit card, online banking, mobile banking, ATM card etc are some of the outcomes of this continuous innovation and improvement. The technological innovations make the consumer more knowledgeable and persuade them to put more thinking in their buying decision. With the involvement of foreign and local banks the competition are on its peak. So only improving the product is not enough to be competitive in the market. Enhancing the service quality is also becoming very important .There are abundant opportunities