You purchase a $30, nonrefundable ticket to a play at a local theater. ten minutes into the show you realize that it is not a very good show and place only a $10 value on seeing the remainder of the show. alternatively you could leave the theater and go home and watch tv or read a book. you place an $8 value on watching tv and a $6 value on reading a book. a. you should go home and watch tv. b. you should go home and read a book. c. you should stay and watch the remainder of the show. d. you should go home and either watch tv or read a book.

C.You should stay and watch the remainder of the show.

Explanation:

Here cost of watching the play = $30

Value of seeing the remainder = $10

Value of watching TV = $8

Value of reading a book = $6

Now since the price of ticket is non refundable, $30 is paid, even if the play is left in between, $30 is gone.

In all the cases least cost will be $30

After which if the book is read value = $6

In case of watching TV value = $8

In case of watching the remainder show value = $10

Since maximum value of watching remainder show is maximum with least cost it shall we continued.

Final Answer

C.You should stay and watch the remainder of the show.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.