Example 21.5 that a person will gain in each combination of state of nature and action is shown in the table. Prob- abilities for three states of nature are also given. The following table shows three states of nature (events) and three actions. The amount Áction A, (Rs) A2 (Rs) A3 (Rs) State of Nature (Event) S2 S3 25,000 30,000 40,000 -7,000 50,000 25,000 -18,000 -8.000 60,000 S2 0.5 S3 0.2 State of nature Probability 0.3 (i) Find out values of EP, EPPI and EVPI. (ii) A research firm has agreed to conduct a survey to provide the management with additional infor- mation regarding the states of nature. It will charge Rs 12,000 for undertaking this survey. Do you think that the survey should be conducted?
Example 21.5 that a person will gain in each combination of state of nature and action is shown in the table. Prob- abilities for three states of nature are also given. The following table shows three states of nature (events) and three actions. The amount Áction A, (Rs) A2 (Rs) A3 (Rs) State of Nature (Event) S2 S3 25,000 30,000 40,000 -7,000 50,000 25,000 -18,000 -8.000 60,000 S2 0.5 S3 0.2 State of nature Probability 0.3 (i) Find out values of EP, EPPI and EVPI. (ii) A research firm has agreed to conduct a survey to provide the management with additional infor- mation regarding the states of nature. It will charge Rs 12,000 for undertaking this survey. Do you think that the survey should be conducted?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 2CYU
Related questions
Question
100%
Statistics question
Transcribed Image Text:Example 21.5) The following table shows three states of nature (events) and three actions. The amount
that a person will gain in each combination of state of nature and action is shown in the table. Prob-
abilities for three states of nature are also given.
Action
A¡ (Rs)
A2 (Rs)
A3 (Rs)
State of Nature (Event)
S,
S2
S3
25,000
30,000
40,000
-7,000
50,000
25,000
-18,000
-8,000
60,000
State of nature
S3
S2
0.5
Probability
0.3
0.2
(i) Find out values of EP, EPPI and EVPI.
(ii) A research firm has agreed to conduct a survey to provide the management with additional infor-
mation regarding the states of nature. It will charge Rs 12,000 for undertaking this survey. Do
ou think that the survey should be conducted?
you
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
