ABC Condominium Corp. of Baguio City, recently purchased land and is attempting to determine the size of the condominium development it should build. It is considering three sizes of development: small (D1); medium (D2); and large (D3). With the three levels of demand- low (S1), medium (S2) and high (S3), the company’s management has prepared the following profit payoff table: Decision Alternatives Low (S1) Medium (S2) High (S3) D1- Small Condo 400,000 400,000 400,000 D2- Medium Condo 100,000 600,000 600,000 D3- Large Condo (300,000) 300,000 900,000 Required: 1. At how much will the "Medium condo, high demand" payoff would be indifferent between the"Medium condo" and "Large condo” decisions, given all other applicable data input items remain the same? 2. Compute for the Expected Value of Perfect Information

ABC Condominium Corp. of Baguio City, recently purchased land and is attempting to determine the size of the condominium development it should build. It is considering three sizes of development: small (D1); medium (D2); and large (D3). With the three levels of demand- low (S1), medium (S2) and high (S3), the company’s management has prepared the following profit payoff table: Decision Alternatives Low (S1) Medium (S2) High (S3) D1- Small Condo 400,000 400,000 400,000 D2- Medium Condo 100,000 600,000 600,000 D3- Large Condo (300,000) 300,000 900,000 Required: 1. At how much will the "Medium condo, high demand" payoff would be indifferent between the"Medium condo" and "Large condo” decisions, given all other applicable data input items remain the same? 2. Compute for the Expected Value of Perfect Information

Name: ABC Condominium Corp. of Baguio City, recently purchased land and is a
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Description: ABC Condominium Corp. of Baguio City, recently purchased land and is attempting to determine the size of the condominiumdevelopment it should build. It is considering three sizes of development: small (D1); medium (D2); and large (D3). With the three

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Decision Alternatives	Low (S1)	Medium (S2)	High (S3)
D1- Small Condo	400,000	400,000	400,000
D2- Medium Condo	100,000	600,000	600,000
D3- Large Condo	(300,000)	300,000	900,000

Required:
1. At how much will the "Medium condo, high demand" payoff would be indifferent between the"Medium condo" and "Large condo” decisions, given all other applicable data input items remain the same?
2. Compute for the Expected Value of Perfect Information.

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