Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Value of perfect information
This relates to the amount that we would pay for an item of information such would enable us to forecast the exact conditions of the market and act accordingly.
The EVPI or expected value of perfect information is the expected outcome along with perfect information minus the expected outcome with no perfect information namely the maximum EMV
Illustration
From above table and described that the probabilities are Boom 0.6, steady state 0.3 and recession 0.1 then
When situations of the market are; boom launch product C: profit = 16
When situations of the market are; steady state launch product B: profit = 6
When situations of the market are; recession launch product B: profit = 12
The expected profit along with perfect information will be
(16 x 0.6) + (6 x 0.3) + (12 x 0.1) = 12.6
Our expected profit choosing product C is 7
The maximum price that we would pay for perfect information is 12.6 - 7 = 5.6
Total Contribution per Year for next 10yeras =$1000+$800 =$1800 So Total Future fund Vaule =$1800*(1+1.073+power(1.073,2)+ power(1.073,2)+ power(1.073,3)+ power(1.073,4)+ power
A bucket of height 8 cm and made up of copper sheet is in the form of frustum of right circular cone with radii of its lower and upper ends as 3 cm and 9 cm respectively. Calculate
Coming To Grips With Mathematics : How does a child acquire mathematical concepts? Can any concept be presented to a child at any stage in such a manner that the child gets some
Is this given matrices are called equal Matrices?
Arithmetic mean Arithmetic means is commonly known as average or mean it is acquired by first of all summing up the values provided and by dividing the total value by the tota
sin (5pi/12)
In pharmaceutical product research doctors visit the place to learn what
Cartesian product - situations in which the total number of ordered pairs (or triples, or ...) are do be found. (e.g., if Hari makes 'dosas' of 3 different sizes, with 4 different
As a creative and innovative entrepreneur, we are required to invent or improvise a product or service that benefits the society and the economy, so what do you think is it?
1. Four different written driving tests are administered by a city. One of these tests is selected at random for each applicant for a drivers license. If a group of 2 women and 4 m
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd