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
1+1
An investment manager at TD Ameritrade is making a decision about a $10,000,000 investment. There are four portfolio options available and she is looking at annual return of these
If Gretta's bicycle has a 25-inch radius wheel, how far will she travel in two turns of the wheel? (π = 3.14) a. 491 in b. 78.5 in c. 100 in d. 157 in d. To determin
Testing The Difference Between Two Sample Means (Large Samples) A large sample is defined as one which have 30 or more items as n≥30 whereas n is the sample size In a busine
What are the characteristics of a queuing system? (i) The input pattern (ii) The queue discipline (iii) The service mechanism
a + b
Differentiate y = x x Solution : We've illustrated two functions similar to this at this point. d ( x n ) /dx = nx n -1 d (a x ) /dx= a
Problems Involving Motion - Word Problems: How far can a car travelling at a rate of 52 miles per hour travel in 2½ hours? Solution: Using Equation 13: s = vavt
273.98 convert it into BCD code?
sin
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