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Use the table below to answer the questions that follow and caculate the Expected Monetary Value (EMV) of the different outcomes DECISION TABLE WITH CONDITIONAL VALUES STATE OF NATURE FAVORABLE OUTCOME UNFAVORABLE OUTCOME ALTERNATIVES ($) ($) Start a big Company 2,000,000 -500,000 Start a small company 800,000 -200,000 Build Nothing 0 0 Probabilities 0.3 0.7 Calculate the following  The EMV  Maximin criterion  Maximax criterion  Minimax criterion

Use the table below to answer the questions that follow and caculate the Expected Monetary Value (EMV) of the different outcomes DECISION TABLE WITH CONDITIONAL VALUES STATE OF NATURE FAVORABLE OUTCOME UNFAVORABLE OUTCOME ALTERNATIVES ($) ($) Start a big Company 2,000,000 -500,000 Start a small company 800,000 -200,000 Build Nothing 0 0 Probabilities 0.3 0.7 Calculate the following  The EMV  Maximin criterion  Maximax criterion  Minimax criterion

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Use the table below to answer the questions that follow and caculate the Expected Monetary Value
(EMV) of the different outcomes
DECISION TABLE WITH CONDITIONAL VALUES
STATE OF NATURE
FAVORABLE OUTCOME UNFAVORABLE OUTCOME
ALTERNATIVES ($) ($)
Start a big Company 2,000,000 -500,000
Start a small company 800,000 -200,000
Build Nothing 0 0
Probabilities 0.3 0.7
Calculate the following
 The EMV

 Maximin criterion

 Maximax criterion

 Minimax criterion

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