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
set theory
Q. Describe Real numbers? Ans. There are a few different ways to describe real numbers. Without going into any of the very technical definitions used by mathematicians, I'
Ask Suppose I offer you a loan to start a safety matchstick production unit on the following terms: I shall first advance you Rs.50,000/- to set up your unit, and wait for 3 month
In the earlier section we introduced the Wronskian to assist us find out whether two solutions were a fundamental set of solutions. Under this section we will look at the other app
We are here going to begin looking at nonlinear first order differential equations. The first type of nonlinear first order differential equations which we will see is separable di
What is Congruent Angles in Parallel Lines ? Postulate 4.1 (The Parallel Postulate) Through a given point not on a line there is exactly one line parallel to the line. T
The horizontal asymptote of (16x+7)(x^2-5)/(x^2+36).
At an office, the manager earns 40% more than a first year employees. The employee earns what fraction of the manager earnings?
what is -(-8)-(-4)*6-(-12)/4=
If the hight of pipe is 18 inches, what is the volume of the shaded region in terms of π? a. 31.5π in 3 b. 126π in 3 c. 157.5 in 3 d. 58.5 in 3
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