Charles River Jazz Festival Case Solution

Case Solution

Charles River Jazz Festival need to research if you should press a compact disk (Compact disk) of Friday's jazz performance on Saturday or Sunday. The idea to press CD's is novel, so there's considerable uncertainty about how precisely receptive clients will probably be. The festival need to research if you should press CD's only on Friday or buy a option to press them on Friday and Saturday. A simulation is completed to help estimate Saturday or Sunday Compact disk demand. One input in the simulation can be a regression relevant Saturday or Sunday attendance to Friday attendance and weekend conditions. The case helps guide you a variety of quantitative techniques--decision analysis, regression, and simulation--might be integrated inside an research into the controlling decision problem. Provides practice in decision analysis demonstrates usage of simulation and regression in obtaining probability estimations.

Excel Calculations

·         Desicion Tree

·         Monetary Benefit

·         Expected Profit Calculations 

Questions Covered

1.       Using Buzz's probability estimate, what is the probability that demand for compact disks will be exactly 4,000 compact disks during the festival, i.e., over Saturday and Sunday combined?

2.       Draw an appropriate decision tree for Buzz's problem, i.e., to determine how many compact disks CRJF should press on Friday. Be sure to include probabilities and the value of the endpoints.

3.       How many CDs should Charles River Jazz Festival press on Friday? Use maximization of Expected Monetary Value as a criterion.

4.       What is the Expected Monetary Value of the best plan in Question 3?