**Investment Decision-Making Exercise**A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 61% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $5,000,000 profit, a 29% chance of returning $2,000,000 profit, and a 56% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $4,000,000 profit, a 26% chance of no profit or loss, and a 59% chance of losing the million dollars.**Task:**Order the expected values from smallest to largest.**Options:**- first, second, third- second, first, third- second, third, first- first, third, second- third, first, second- third, second, first**Hint:**- [Hint](#)- [Video on Expected Value](#)**Submit Question***Note: Calculate the expected value for each investment using the formula: Expected Value (EV) = (Probability of Outcome 1 × Value of Outcome 1) + (Probability of Outcome 2 × Value of Outcome 2) + (Probability of Outcome 3 × Value of Outcome 3).*

Name: **Investment Decision-Making Exercise**A venture capitalist, willing
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Description: **Investment Decision-Making Exercise**A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,

Givn that : A venture capital is willing to invest $1,000,000. The first investment. a software…

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A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 61% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $5,000,000 profit, a 29% chance of returning $2,000,000 profit, and a 56% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $4,000,000 profit, a 26% of no profit or loss, and a 59% chance of losing the million dollars. Order the expected values from smallest to largest. first, second, third second, first, third second, third, first O first, third, second O third, first, second third, second, first

A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 61% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $5,000,000 profit, a 29% chance of returning $2,000,000 profit, and a 56% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $4,000,000 profit, a 26% of no profit or loss, and a 59% chance of losing the million dollars. Order the expected values from smallest to largest. first, second, third second, first, third second, third, first O first, third, second O third, first, second third, second, first

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Toys Everyday must decide which course of action to follow in promoting a new Gizmo toy it has developed. Initially management must decide whether to market this toy or to conduct a test marketing programme. After test marketing the Gizmo, management must decide whether to abandon it or distribute it nationally. A national success will (NS) will increase profits by $1,000,000 and a failure (NF) will reduce profits by $200,000. Abandoning the product will not affect profits. The test marketing will cost the company a further $20,000. Decision Alternatives NS(NATIONAL | NF(NATIONAL FAILURE) SUCCESS) Market 1000,000 ($200,000) Abandon Prior Probabilities P(S) = 0.45 P(F) = .55 Conditional probability for a given state of nature where test results are either Favourable (F) P(U|NS) = 0.12; or negative (U): P(F]NS) = 0.88; P(U|NF) = 0.82 P(F|NF) = 0.18; After you have computed the revised probabilities round to two decimal places a) Construct the appropriate decision tree to help Toys make…
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Toys Everyday must decide which course of action to follow in promoting a new Gizmo toy it has developed. Initially management must decide whether to market this toy or to conduct a test marketing programme. After test marketing the Gizmo, management must decidewhether to abandon it or distribute it nationally.A national success will (NS) will increase profits by $1,000,000 and a failure (NF) will reduce profits by $200,000. Abandoning the product will not affect profits. The test marketing will cost the company a further $20,000. After you have computed the revised probabilities round to two decimal placesa) Construct the appropriate decision tree to help Toys make the appropriate decisions. This tree must be constructed in logical order with labels and net payoffsIt also includes the revised probabilities b) Fold back the decision tree to determine the best strategy for Toys; you must state this strategy. What is the final expected profit?c) What is the expected value of sample…
Toys Everyday must decide which course of action to follow in promoting a new Gizmo toy it has developed. Initially management must decide whether to market this toy or to conduct a test marketing programme. After test marketing the Gizmo, management must decidewhether to abandon it or distribute it nationally.A national success will (NS) will increase profits by $1,000,000 and a failure (NF) will reduce profits by $200,000. Abandoning the product will not affect profits. The test marketing will cost the company a further $20,000. Conditional probability for a given state of nature where test results are either Favourable (F) or negative (U): P(F|NS) = 0.88; P(U|NS) = 0.12; P(F|NF) = 0.18; P(U|NF) = 0.82 After you have computed the revised probabilities round to two decimal places a) Construct the appropriate decision tree to help Toys make the appropriate decisions. This tree must be constructed in logical order with labels and net payoffs It also includes the revised probabilities…
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A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 10% chance of returning $10,000,000 profit, a 24% chance of returning $3,000,000 profit, and a 66% chance of losing the million dollars. The second company, a hardware company, has a 13% chance of returning $7,000,000 profit, a 22% chance of returning $1,000,000 profit, and a 65% chance of losing the million dollars. The third company, a biotech firm, has a 8% chance of returning $7,000,000 profit, a 28% of no profit or loss, and a 64% chance of losing the million dollars.Order the expected values from smallest to largest.
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