Use the table below to determine the expected value of perfect information.The probabilities for the states of nature are s1-0.20, s2-0.30 and $3=0.50Decisiond1d2d3d4s1State of Natures210,00015,00020,00011,000s35,000 15,0009,000 10,000-5,000 10,000-4,00015,000

To calculate the expected value of perfect information (EVPI), we first need to calculate the…

Answered: Use the table below to determine the…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Bob, the proprietor of Midway Lumber, bases his projections for the annual revenues of the company on the performance of the housing market. He rates the performance of the market as very strong, strong, normal, weak, or very weak. For the next year, Bob estimates that the probabilities for these outcomes are 0.19, 0.27, 0.37, 0.07, and 0.10, respectively. He also thinks that the revenues corresponding to these outcomes are $20, $18.4, $16.8, $16, and $11 million, respectively. What is Bob's expected revenue for next year? (Round your answer to two decimal places.)
part ii
Given two events G and H, the probabilities of each occurring are as follows: P(G) = 0.35; P(H) = 0.19; P(H AND G) = 0.1. Using this information: Find the complement of P (H AND G). Type answer with 0 in front of decimal to 2 places. If answer is like .2, type 0.2 not .2 or 0.20.
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Previously, De Anza's statistics students estimated that the amount of change daytime statistics students carry is exponentially distributed with a mean of $0.88. Suppose that we randomly pick 25 daytime statistics students. Find the probability that an individual had between $0.80 and $1.00. Graph the situation, and shade in the area to be determined.
K Find P(A or B or C) for the given probabilities. P(A)=0.39, P(B) = 0.22, P(C) = 0.11 P(A and B) = 0.12, P(A and C) = 0.02, P(B and C) = 0.07 P(A and B and C) = 0.01 P(A or B or C) =
Can you do a, b, c?
Examine the following table: A A Totals 200 800 1,000 - 300 700 1,000 Totals 500 1,500 2,000 a. Calculate the following probabilities: P(A), P(A), P(A\B), P(ATB), P(A B), and P(A\B). b. Show that (1) A and B. (2) A and B.(3) A and B. (4) A and B are dependent events.
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
Bob, the proprietor of Midway Lumber, bases his projections for the annual revenues of the company on the performance of the housing market. He rates the performance of the market as very strong, strong, normal, weak, or very weak. For the next year, Bob estimates that the probabilities for these outcomes are 0.15, 0.25, 0.39, 0.09, and 0.12, respectively. He also thinks that the revenues corresponding to these outcomes are $23, $18.6, $16.9, $14, and $6 million, respectively. What is Bob's expected revenue for next year?
Suppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…
An experiment consists of two independent trials. The outcomes of the first trial are A, B, and C, with probabilities of occurring equal to 0.2, 0.4, and 0.4, respectively. The outcomes of the second trial are E and F, with probabilities of occurring equal to 0.7 and 0.3. Draw a tree diagram representing this experiment. Use this tree diagram to find the probabilities below. (a) P(B)(b) P(F | B)(c) P(B F)(d) P(F)(e) Does P(B F) = P(B) · P(F)? YesNo (f) Are B and F independent events? YesNo

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Use the table below to determine the expected value of perfect information. The probabilities for the states of nature are s1-0.20, s2-0.30 and $3-0.50 Decision d1 d2 d3 d4 State of Nature $2 s1 10,000 5,000 15,000 9,000 20,000 -5,000 11,000 -4,000 $3 15,000 10,000 10,000 15,000