# Fix And Repair A Corrupted Excel File

 QUESTION 10 Slaggert Systems is considering becoming certified to the ISO 9000 series of quality standards. . Becoming certified is expensive, but the company could lose a substantial amount of business if its major customers suddenly demand ISO certification and the company does not have it. . At a management retreat, the senior executives of the firm developed the following payoff table, indicating the net present value of profits over the next five years.. Customers’ Response Decision Standards Required Standards Not Required Probabilities Become certified \$82,000 \$63,000 Standards Required Standards Not Required Stay uncertified \$80,000 \$72,500 0.41 0.59 Part 1 Identify the type of decision problem and use excel formulas and functions to determine the following calculations. Best and Worst Payoffs Opportunity-Losses Minimum Maximum Standards Required Standards Not Required MAX Type of decision problem Become certified Become certified What are the payoffs ? Stay uncertified Stay uncertified Part 2 What decision should the company make using each of the following strategies ? a.  Decision using Aggressive strategy with Payoff value = which is the value among the outcome values of the alternatives considered b.  Decision using Conservative strategy with Payoff value = which is the value among the outcome values of the alternatives considered c.  Decision using Opportunity-Loss strategy with opportunity loss = which is the value among the opportunity losses of the alternatives considered Part 3 Compute the standard deviation of the payoffs for each decision. What does this tell you about the risk in making the decision? a. Std Deviation of Payoffs for becoming certified b. Std Deviation of Payoffs for staying uncertified c. Which Decision has Greater Risk ? Part 4 What decision should be made using the Average payoff strategy ? a. Average of Payoffs for becoming certified b. Average of Payoffs for staying uncertified c.  Decision using Average Payoff strategy Part 5 Use the probabilities given on the problem statement section to determine what decision should be made using the Expected Value strategy a. Expected Value for becoming certified b.Expected Value for staying uncertified c.  Decision using Expected value strategy