Evaluate the probability of a great national market

Assignment Help Basic Statistics
Reference no: EM131641837

Question: Prior probabilities are often educated guesses at best, so it is worth performing a sensitivity analysis on their values. However, you must make sure that they are varied so that all probabilities are nonnegative and sum to 1. For the Acme problem, perform the following sensitivity analyses on the three prior probabilities and comment on the results.

a. Vary the probability of a great national market in a one-way sensitivity analysis from 0 to 0.6 in increments of 0.1. Do this in such a way that the probabilities of the two other outcomes, fair and awful, stay in the same ratio as they are currently, 7 to 4.

b. Vary the probabilities of a great and a fair national market independently in a two-way sensitivity analysis. You can choose the ranges over which these vary, but you must ensure that the three prior probabilities continue to be nonnegative and sum to 1. (For example, you couldn't choose ranges where the probabilities of great and fair are 0.6 and 0.5.)

Reference no: EM131641837

Questions Cloud

Consequences of using transformational leadership behaviors : What are considered to be the positive and negative consequences of using transformational leadership behaviors?
What is the value for the acme problem : Following up on the previous problem, the expected net gain from information is defined as the expected amount gained by having access to the information.
Who you think would participate in your research study : Who you think would participate in your research study. The ways you might analyze the results, based on your proposed design.
Calculate the total contribution margin : If its total fixed costs are $182,000 and its total variable costsa re $267,000, then the total contribution margin is
Evaluate the probability of a great national market : Vary the probability of a great national market in a one-way sensitivity analysis from 0 to 0.6 in increments of 0.1.
Domination of political sessions by the congress : What were the factors that caused for domination of political sessions by the Congress.
Why you think it is or is not possible for the fourth branch : write a paper why you think it is or is not possible for the "Fourth Branch" of our government (the bureaucracy) to be equal with the other three branches.
Compare and contrast the unauthorized use : Compare and contrast the Unauthorized Use vs. Inappropriate Use categories of incidents and how they should be handled.
What will the variable expense per unit : If the selling price per unit is $75, total fixed expenses are $90,000, what will the variable expense per unit be

Reviews

Write a Review

Basic Statistics Questions & Answers

  Determining the fundamental objective

1. When a movie producer decides whether to produce a major motion picture, the main question is how much revenue the movie will generate. Draw a decision tree of this situ ation, assuming that there is only one fundamental objective, to maximize ..

  Stage markets or competitive situations

Actually, late movers can be very good competitors in late stage markets or competitive situations. It just takes a different suite of skills to produce good performance in markets that are moving toward price competition.

  For example the probability that the economy will be in

suppose that the percentage annual return you obtain when you invest a dollar in gold or the stock market is dependent

  Value of percentile-given mean and third quartile

Scores on a test have a mean of 73 and Q3 is 81. The scores have a distribution that is approximately normal. Find P90.

  The national freshman-to-sophmore retention rate has held

the national freshman-to-sophmore retention rate has held steady at 74. a certain college has 483 of 607 freshman

  What are the critical chi square values

1.) A doctor claims that the standard deviation of systolic blood pressure is 12 mmHg. A random sample of 24 patients found a standard deviation of 14mmHg. Assume the variable is normally distributed. At a=0.01, what are the critical chi square..

  Can you conclude at the 0025 level of significance that a

a washington post-abc news poll found that 72 of people are concerned about the possibility that their personal records

  Calculating all the values of a binomial distribution

When calculating all the values of a binomial distribution, the work can usually be simplified by first calculating b(0; n, θ ) and then using the recursion formula

  Probability of a rise or fall in the gdp

We have been informed that the stock has gone up 20%. What is the probability of a rise or fall in the GDP?

  Find cumulative distribution function of the number of cars

Find the probability that the number of cars sold tomorrow will be between two and four (both inclusive).- Find the cumulative distribution function of the number of cars sold per day.

  Whether given experiments was single blind or double blind

In each case, explain whether the experiment was a matched-pair design, a block design, or neither.- Explain whether each of the following experiments was single-blind, double-blind, or neither.

  What is the most accurate statement

A hypothesis test is carried out using α = 0.01 the level of significance, and H0 cannot be rejected. What is the most accurate statement we can make about the p-value for this test?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd