Sampson Racing

Sampson Racing Decision Rationale Lets execute!!! The plat below provides a high-level overview of the process I use to make my finis to race. Using a decision tree, I mapped out to each one of the possible outcomes (ending condition), assuming that the $1M sponsorship from GoodStone was guaranteed with a occur 5 bar and that a chastening to finish for a reason some other than engine failure would not progeny in the oil color color sponsorship being lost. Calculations: pose In crystallize 5 If the team firm to race, finishes, and places in the covering fire 5, the evaluate apprise (ending condition) is $1,467,500 ($1,000,000.00 from the GoodStone Sponsorship, plus $500,000 from the oil sponsorship for wedded era, slight the -$32,500 outset condition of the team). Dont posture In authorize 5 - If the team clear-cut to race, finishes, and doesnt place in the top 5, the anticipate value (ending condition) is $467,500 ($500,000 from the oil sponso rship for next season, less(prenominal) the -$32,500 starting time condition of the team). Engine mischance - If the team decided to race and doesnt finish imputable to engine failure, the expected value (ending condition) is -$532,500 (-$500,000 from the oil sponsorship for next season plus the -$32,500 starting condition of the team).

Not Engine calamity - 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 Race - If the team decided not to race, the expected value (ending conditi on) is $450,000 ($500,000 from the oil spons! orship for next season, plus the $7,500.00 recovery of half the introduction fee, less the $25,000 repayment to GoodStone, less the $32,500 starting condition). The EMV was determined for each of the potential 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 ill EMV = 0.777...If you want to give-up the ghost a full essay, order it on our website: OrderEssay.net

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