Sampson Racing

Sampson Racing Decision Rationale lets RACE!!! The plat below provides a upper-level overview of the process I custom to make my decision to race. utilize a decision tree, I mapped out each of the practicable outcomes (ending take), assuming that the $1M sponsorship from GoodStone was guaranteed with a slide by 5 finish and that a failure to finish for a cause some new(prenominal) than engine failure would non progeny in the crude vegetable crude oil sponsorship being lost. Calculations: Placed In crystallize 5 If the group firm to race, finishes, and clothes in the net 5, the evaluate value (ending chassis) is $1,467,500 ($1,000,000.00 from the GoodStone Sponsorship, convinced(p) $500,000 from the oil sponsorship for attached season, frail the -$32,500 outset condition of the squad). codt Place In authorize 5 - If the group clear-cut to race, finishes, and doesnt place in the summit meeting 5, the live value (ending condition) is $467,500 ($500,000 from the oil sponsorship for nigh season, little(prenominal) the -$32,500 starting signal time condition of the police squad). Engine Failure - If the team decided to race and doesnt finish due to engine failure, the pass judgment value (ending condition) is -$532,500 (-$500,000 from the oil sponsorship for coterminous season improver the -$32,500 starting condition of the team).

not Engine Failure - If the team decided to race and doesnt finish for a reason other than an engine failure, the expected value (ending condition) is $467,500 ($500,000 from the oil sponsorship for next season, less the -$32,500 starting condition of the team). Dont ply - If the team decided not to race, the expected value (ending condition) is $450,000 ($500,000 from the oil sponsorship for next season, plus the $7,500.00 recovery of half the entry fee, less the $25,000 repayment to GoodStone, less the $32,500 starting condition). The EMV was determined for each of the capability outcomes as follows: TOP 5 EMV = 0.80 (12/15 top 5 finishes) * $1,467,500 + 0.20 (3/15 not top 5) * $467,500 = $1,267,500 Engine Failure EMV = 0.777...If you compulsion to give-up the ghost a just essay, order it on our website: Ordercustompaper.com

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