Thermtech Science has performed an economic analysis of proposed service in a new region of the country. The three-estimate approach to sensitivity analysis has been applied. The optimistic and pessimistic values each have an estimated 15% chance of occurring. Use the FW values shown to determine the expected FW. Optimistic Most Likely Pessimistic FW value, $ 200,000 40,000 −25,000
Thermtech Science has performed an economic analysis of proposed service in a new region of the country. The three-estimate approach to sensitivity analysis has been applied. The optimistic and pessimistic values each have an estimated 15% chance of occurring. Use the FW values shown to determine the expected FW. Optimistic Most Likely Pessimistic FW value, $ 200,000 40,000 −25,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Thermtech Science has performed an economic
analysis of proposed service in a new region of the
country. The three-estimate approach to sensitivity
analysis has been applied. The optimistic and pessimistic
values each have an estimated 15% chance
of occurring. Use the FW values shown to determine
the expected FW.
Optimistic Most Likely Pessimistic
FW value, $ 200,000 40,000 −25,000
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