pany builds at Diablo, however, and an earthquake occurs at Diablo during the next five years, construction will be terminated and the company will lose $10 million (and will still have to build a power plant at Roy Rogers City). Without further expert information the company believes there is a 20% chance that an earthquake will occur, at Diablo during the next five years. For $1 million, a geologist can be hired to analyze the fault structure at Diablo Canyon. She will predict either that an ea
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A nuclear power company is deciding whether to build a nuclear power plant at Diablo Canyon or at Roy Rogers City. The cost of building the power plant is $10 million at Diablo and $20 million at Roy Rogers City. If the company builds at Diablo, however, and an earthquake occurs at Diablo during the next five years, construction will be terminated and the company will lose $10 million (and will still have to build a power plant at Roy Rogers City). Without further expert information the company believes there is a 20% chance that an earthquake will occur, at Diablo during the next five years. For $1 million, a geologist can be hired to analyze the fault structure at Diablo Canyon. She will predict either that an earthquake will occur or that an earthquake will not occur. The geologist’s past record indicates that she will predict an earthquake with probability 0.95 if an earthquake will occur, and she will predict no earthquake with probability 0.90 if an earthquake will not occur. Should the power company hire the geologist? Also, calculate and interpret EVI and EVPI.
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