Devry GSCM209 Week 1 Quiz Latest 2019 JULY Question # 00603267 Subject: Education Due on: 07/22/2019 Posted On: 07/22/2019 06:09 AM Tutorials: 1 Rating: 4.7/5
GSCM209 The Supply Chain Management Decision Support Tools and
Applications
Week 1 Quiz
(TCOs 13
and 14) A do-it-yourself homeowner is installing a new toilet. While installing
the toilet, he must decide on what kind of connecting pipe he will install to
the water supply. There are two available options, one that has a shut-off
valve in case of a leak and a cheaper one without the shut-off valve. Suppose that
the shut-off valve pipe costs an extra $10 and that the homeowner must buy one
of the two.
(a) (20
points) In terms of p, what are the probabilities for each node (A1, A2, B1,
and B2)?
(b) (35
points) If the chance of a leak causing household damage is 4%, at what dollar
amount of household damage is the owner neutral on which pipe to buy?
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