Quatitative methods, Advanced Statistics

Assignment Help:
An oil company is considering whether or not to bid for an offshore drilling contract. If they bid, the value would be $600m with a 65% chance of gaining the contract. The company may set up a new drilling operation or move its already existing operation, which has proved successful to the new site. The probability of success and expected returns (in $m) are as follows:



If the company does not bid or lose the contract, they can use the $600m to modernize their operations. This would result in a return of either 5% or 10% on the sum invested with probabilities 0.45 and 0.55 respectively.

With the aid of a decision tree, prepare a detailed quantitative report advising the company on the best course of action.

Related Discussions:- Quatitative methods

Clinical trials, Clinical trials : Medical experiments designed to assess w...

Clinical trials : Medical experiments designed to assess which of two or more treatments is much more effective. It is based on one of the oldest philosophy of the scienti?c resear

Orthogonal, Orthogonal is a term which occurs in several regions of the st...

Orthogonal is a term which occurs in several regions of the statistics with different meanings in each case. Most commonly the encountered in the relation to two variables or t

Generate a scatter plot, Suppose we estimate the following model: Passen...

Suppose we estimate the following model: Passengersi = 1 + 2Populationi + ui a) Generate a scatter plot with passengers on the vertical axis and population on the horizonta

Disclosure risk, The risk of being able to recognize the respondent's confi...

The risk of being able to recognize the respondent's confidential information in the data set. Number of approaches has been proposed to measure the disclosure risk some of which c

Find distribution - expected value and variance, We are installing a router...

We are installing a router for our network. We believe that the time between the arrival of packets will be exponentially distributed with parameter R = 2 packets/second, and th

Pre analysis data screening, need answers to questions in book advanced and...

need answers to questions in book advanced and multivariate statistical methods

Define interval-censored observations, Interval-censored observations ar...

Interval-censored observations are the  observations which often occur in the context of studies of time elapsed to the particular event when subjects are not monitored regularl

Biplots, Biplots: It is the multivariate analogue of the scatter plots, wh...

Biplots: It is the multivariate analogue of the scatter plots, which estimates the multivariate distribution of the sample in a few dimensions, typically two and superimpose on th

LASPEYERES QUANTITY INDEX, HOW TO OBTAIN THE LASPEYRES QUANTITY INDEX AND T...

HOW TO OBTAIN THE LASPEYRES QUANTITY INDEX AND THE FORMULA

Write Your Message!

Captcha
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