How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Bizhelp Your Own Question

Bizhelp, CPA
Category: Homework
Satisfied Customers: 5883
Experience:  Bachelors Degree and CPA with Accounting work experience
Type Your Homework Question Here...
Bizhelp is online now
A new question is answered every 9 seconds

Star Products, Inc. faces uncertain demand conditions in 2012.

This answer was rated:

Star Products, Inc. faces uncertain demand conditions in 2012. Management at Star
Products is considering three different levels of output for 2012: 1, 1.5, or 2 million units.
Management has determined that the following profit levels will occur under weak and
strong demand conditions:
Profit (in $millions) if
Demand is
Output Level Weak Strong
1 million units 60 175
1.5 million units 50 200
2.0 million units –50 400
1. Using each of the four rules for decision making under uncertainty, determine the
output level of 2012.
Maximax rule ______________ units of output
Maximin rule ______________ units of output
Minimax regret rule ______________ units of output
Equal probability rule ______________ units of output
2. Now suppose that management believes the probability of weak demand in 2012 is
25% and the probability of strong demand is 75%. Compute the expected profit,
variance, standard deviation, and coefficient of variation for each level of output:
Output E(π ) 2
σ υ
1 million units
________ ________ ________ ________
1.5 million units
________ ________ ________ ________
2.0 million units
________ ________ ________ ________
3. Based on the expected value rule, Star Products should produce ________ units in

Answer must be in excel and use Solver when applicable.

Thanks for the question.

Please click here to download the solution.

Hope this helps!

*** One last step: after you review my response, please take a moment to rate my service as "Excellent" so that I may be credited for assisting you. If my assistance was anything less than "OK Service", please click on "Reply" and let me know what I can do to clarify my answer or provide you with EXCELLENT service. If you reply, please wait to rate my answer UNTIL AFTER RECEIVING A FOLLOW-UP REPLY FROM ME. If I receive anything less than OK Service, I will receive no earnings; however, this Website will get your entire deposit. Thank you for your kind understanding in this matter. If you have any problems rating me, then simply reply saying you are having difficulties rating and specify whether my service was excellent, good, or OK and I will ask customer service to apply the rating.***

Customer: replied 4 years ago.

These questions also went to the problems but didnt show up.when I originally asked them.


4. Using mean-variance analysis, which level of output should be chosen? Explain your answer.


5. Using the coefficient of variation rule, Star Products should produce ______ units
in 2012. Explain briefly.


Please add it to the original document and then I will rate this for you.


thank you


OK, I have updated the answer file with the additional questions.

Please click here to download the solution.

Hope this helps!

Bizhelp and 3 other Homework Specialists are ready to help you
Customer: replied 4 years ago.

Thank you very much for your help! It is much easier for me to understand now!


You need to spend $3 to view this post. Add Funds to your account and buy credits.

Related Homework Questions