The decision tree costs and benefits of present value, Basic Statistics

Assignment Help:

Question:

Imagine that your client, Hillside County Forest Preserve (HCFP), is considering how best to protect their natural lagoons. They have asked for your help, and you have found the following/

If they do nothing, the lagoons are sure to deteriorate and have a societal cost of $100,000
If they enact an experimental new program, called Lagoon Preservation Project ("LPP"), then there is a 50% chance that it will be successful, yielding a societal benefit of $70,000. There is a 50% chance it will not be successful, causing further harm to the lagoons, yielding a societal cost of $150,000
Enacting LPP will cost $10,000

Assume all costs and benefits above are expressed in present values.

a. Which option has the higher expected benefit to society? Show the decision tree that supports your answer.

b. What would the likelihood of success of LPP need to be for enacting it to have the same Expected Value as not enacting it?

Related Discussions:- The decision tree costs and benefits of present value

Moderate negative correlation, I want as much information about moderate ne...

I want as much information about moderate negative correlation.

Absorption distributions , Absorption distributions Probability distribu...

Absorption distributions Probability distributions which represent the number of 'individuals' (such as particles) which fail to cross the speci?ed area containing the hazards o

Find a p-value from a t-test, A random sample of 321 New Jersey and 77 Penn...

A random sample of 321 New Jersey and 77 Pennsylvania fast-food restaurants was selected from those fast-food restaurants in this study. The restaurants were categorised into two

HISTORIGRAM, #definition

#definition

Corlation, 1. Calculate Karl Pearson’s coefficient of correlation between e...

1. Calculate Karl Pearson’s coefficient of correlation between expenditure on advertising (X) and sales (Y) from the data given below: The management decided to stop further expens

Nuclear spin, Nuclear spin All nucleons (protons or neutrons) are spin par...

Nuclear spin All nucleons (protons or neutrons) are spin particles. They have spin odd half multiple of h = (h/2p) they follow Fermi disc statistics or Pauli’s exclusion principle

Statistical method, advantages of statistical method

advantages of statistical method

Hom, (A) Find the binomial probability P(x = 5), where n = 15 and p = 0.50....

(A) Find the binomial probability P(x = 5), where n = 15 and p = 0.50. (B) Set up, without solving, the binomial probability P(x is at most 5) using probability notation. (C) H

What is the point estimate of the proportion, According to Thomson Financia...

According to Thomson Financial, through January 25, 2006, the majority of companies reporting profits had beaten estimates (BusinessWeek, February 6, 2006). A sample of 162 compani

Determine the coefficient of determination, 1. A researcher was interested ...

1. A researcher was interested lowering the high school dropout level in his county. He measured the reading level of students entering middle school (based on a standard test) and

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages