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
Determine the mean of the subsequent numbers: Example: Determine the mean of the subsequent numbers: 5, 7, 1, 3, 4 Solution: where x' =
how to divide an arc in three equal parts
how to find equations of circles when given equations of centres on which it lies?
Is the group of order 10 simple?
is this free for LIFE that means forever never ever going to pay
One of the simplest physical situations to imagine of is a falling object. Thus let's consider a falling object along with mass m and derive a differential equation as, when resolv
9:59-10:45
Three payments of $2000 (originally due six months ago, today, and six months from now) have been renegotiated to two payments: $3000 one month from now and a second payment due in
Find the volume of a cylinder of radius r and height h. Solution : Here, as we mentioned before starting this illustration we actually don't require using an integral to get t
the wholesale p of string beans in dollars per bushel and the daily supply x in thousands of bushel,are related by the equation px+6x+7p=5950. if the supply is decreasing at the r
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