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?
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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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
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