What is the expected value of perfect information? States of Nature / Probabilities Decisions S1.20 S2.10 S3.70 D1 10,000 -5,000 15,000 D2 15,000 9,000 10,000 D3 20,000 -5,000 10,000 D4 11,000 -4,000 10,000 O 12,500 O 12,400 O 15,400 ○ 3,100
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- I need help with theseWhich expected opportunity loss table is appropriate given the opportunity loss table below? The probability of a market rise is P = 0.7 and the probability of a market decline is P = 0.3 Act Investment 1 Investment 2 Purchase Investment 1 Investment 2 Purchase Investment 1 Investment 2 Purchase Investment 1 Investment 2 Purchase Investment 1 Investment 2 Opportunity Loss (S) Market Rise 4,000 0 Market Decline 0 3,000 Expected Opportunity Loss ($) 4,000 4,000 Expected Opportunity Loss ($) 1,200 1,200 Expected Opportunity Loss ($) 0 1,000 Expected Opportunity Loss ($) 2,800 900Cynthia is president of an international chemical distribution company, Cchem. Weekly gross sales for Cchem has a mean of $1 million and standard deviation of $0.2 million; the distribution of sales is highly right-skewed. One week’s sales are independent of the sales in any other week. Use this information to answer questions 5 to 6 below. What is the probability that sales for the week of October 5, 2009 will be more than $1.25 million? In order for Cynthia to receive a bonus, Cchem’s annual sales must exceed $53 million. What is the probability that Cynthia will receive a bonus for the fiscal year starting in 2010? Assume there are 52 weeks in a year.
- Two events A and B are having the following probabilities: P(A) = 0.43, P(B) = 0.36, P(A and B) = 0.23 Calculate P(A and B')? Round answer to 2 decimalsA payoff table is given as (payoffs = profits) If the probabilities of s1, s2, and s3 are .2, .4, and .4, respectively, then what decision should be made under expected value? What is the EVPI? Please answer clearly.Compute the indicated probabilities by referring to the probability tree. 0.4 0.2 M 0.6 (A) P(Mns) (B) P(R) 0.6 R 0.8 0.4 (A) P(MnS) = (Type an integer or a decimal.) %3D In
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