The B case brings Intrinergy's point of view into play. Intrinergy has two options for obtaining the biomass to produce steam for the industrial plant. They can use wood chips or sawdust. The wood chips are available at woodlands, essentially for free, although a capital investment in trucks is...

An investment club must decide how to invest funds jointly when the two members have different risk aversions. The utility of investment taken from the risk/return frontier is evaluated, and additive utility, Nash bargaining, and MaxMin utility are compared

Four years after the A and B cases (UVA-QA-0209 and UVA-QA-0210), the annual plan has drifted greatly from that suggested by the analysis in the B case. How can the decision-analysis methodology be simplified to provide routine planning guidance?

Asea Brown Boveri, Mannheim, is considering the purchase of an East Berlin maufacturer of turbines from the Treuhandanstalt. It is an opportunity to start in East Germany and to work for markets in Eastern Europe. Low productivity, high pollution, potential inablity of Eastern customers to buy,...

In the B case, the consultant looks at historical data for five consumer magazines (Health, Better Homes and Gardens, Working Woman, Country Living, and True Story). For each one, she tries to determine the best method of forecasting circulation that also makes sense in light of external...

We have all created options. We create a simple option when we make a nonrefundable deposit to hold a hotel room for the first night of a four-night ski vacation or to save a seat in the entering class of a college. Did our option premium give us good value? That depends on the chances that we...

This case provides an explanation of a Lotus worksheet built to implement exponential smoothing for the data in amp;quot;Wachovia Bank and Trust Company, N.A. (B): Piedmont Operations Center Schedulingamp;quot; (UVA-OM-0664)

In the B case, the initial results from a Monte Carlo simulation seem to conflict with the critical-fractile result obtained earlier. The manager must figure out why and then make a decision. See also the A case (UVA-QA-0339)

This case describes new options on weather derivatives from Enron, in particular, floors, swaps, and caps on heating-degree days. An electric utility is considering whether to purchase a weather derivative to offset the risk of low volume of kilowatt-hours. After understanding the nature and...