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Dollar Department Stores has just acquired the chain of Wenthrope Custom Jewelers. Dollar has received an offer from Harris Diamonds to purchase the Wenthrope store on Grove Street for $129,000. Dollar has determined probability estimates of the store's future profitability, based on economic outcomes, as: P ($85,000) = 0.2, P ($107,000) = 0.3, P ($129,000) = 0.1, and P ($159,000) = 0.4. (a) Should Dollar sell the store on Grove Street? Yes, Dollar should sell the store.No, Dollar should not sell the store.     (b) What is the EVPI (in $)? $  (c) Dollar can have an economic forecast performed, costing $14,000, that produces indicators  I1  and  I2,  for which  P (I1 | 85,000) = 0.1;   P (I1 | 107,000) = 0.2;   P (I1 | 129,000) = 0.6;   P (I1 | 159,000) = 0.3.  Should Dollar purchase the forecast? YesNo

Dollar Department Stores has just acquired the chain of Wenthrope Custom Jewelers. Dollar has received an offer from Harris Diamonds to purchase the Wenthrope store on Grove Street for $129,000. Dollar has determined probability estimates of the store's future profitability, based on economic outcomes, as: P ($85,000) = 0.2, P ($107,000) = 0.3, P ($129,000) = 0.1, and P ($159,000) = 0.4. (a) Should Dollar sell the store on Grove Street? Yes, Dollar should sell the store.No, Dollar should not sell the store.     (b) What is the EVPI (in $)? $  (c) Dollar can have an economic forecast performed, costing $14,000, that produces indicators  I1  and  I2,  for which  P (I1 | 85,000) = 0.1;   P (I1 | 107,000) = 0.2;   P (I1 | 129,000) = 0.6;   P (I1 | 159,000) = 0.3.  Should Dollar purchase the forecast? YesNo

MATLAB: An Introduction with Applications
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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Dollar Department Stores has just acquired the chain of Wenthrope Custom Jewelers. Dollar has received an offer from Harris Diamonds to purchase the Wenthrope store on Grove Street for $129,000. Dollar has determined probability estimates of the store's future profitability, based on economic outcomes, as: P ($85,000) = 0.2, P ($107,000) = 0.3, P ($129,000) = 0.1, and P ($159,000) = 0.4.
(a)
Should Dollar sell the store on Grove Street?
Yes, Dollar should sell the store.No, Dollar should not sell the store.    
(b)
What is the EVPI (in $)?
$ 
(c)
Dollar can have an economic forecast performed, costing $14,000, that produces indicators 
I1
 and 
I2,
 for which 
P (I1 | 85,000) = 0.1;
 
P (I1 | 107,000) = 0.2;
 
P (I1 | 129,000) = 0.6;
 
P (I1 | 159,000) = 0.3.
 Should Dollar purchase the forecast?
YesNo    
 
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