### Determine the expected value of perfect information

Assignment Help Operation Management
##### Reference no: EM13106112

Mary Decker is thinking of suing the manufacturer of her car because of a defect that she believes caused her to have an accident, and kept her out of work for a year. She is suing the company for \$3.0 million. The company has offered her a settlement of \$500,000 of which Mary would receive \$300,000 after attorney's fees. Her attorney has advised her that she has a 60% chance of winning her case. If she loses she will incur attorneys' fees and court costs of \$60,000. If she wins she is not guaranteed to receive the full 3 million. Her attorney believes that there is a 50% chance she could receive the full amount, in which case Mary would get \$2 million after her attorney takes his cut, and a 50% chance that the jury will award her a lesser amount of \$1 million, of which Mary would get half. Furthermore, Mary has to decide- in the event of her winning the case or going for the settlement- as to whether she should invest the money in the stock market or put it into a fixed deposit earning 10% simple interest at the end of the year. Her profit percentages from the stock market under two market conditions at the end of the year are shown in the table below: Market Conditions Profit Probability Good 20% 0.6 Bad -10% 0.4 a) Should Mary sue the company or take the settlement? Answer this question with a decision tree. b) Determine the Expected Value of Perfect Information (EVPI) for the conditions of winning or losing the case. Answer this question with a decision tree.

#### Explanation for negotiating pay and benefits

Use the internet to research how an interviewee or a current employee might negotiate better pay and/or benefits. Consider using a search term like "negotiating pay and benefi

Discuss the advantages and disadvantages of end-user computing and determine if this is an application that should be progressively pursued. Explain your rationale.

#### Simple minimizing process velocity

Recently some Operations Management experts have begun insisting that simple minimizing process velocity, which actually means minimizing the time that it takes to process som

#### Briefly explain main points of clinical documentation study

Briefly explain the main points of the Clinical Documentation study.(In other words, how will this information affect your work as a Health Information professional?

#### Describe an approach to business diversity program

Describe an approach to a business diversity program that would be pragmatic and ethical. he definition of diversity rests on a valuation of differences across different group

#### Determine the impacts of culture on motivation

What are the impacts of culture on motivation? Are all cultures motivated by the same thing? Is there a slant in the research? Is there a theory you believe would work across

#### Analysis of negotiating field

Assuming that I am the negotiator who is tasked with a salary and benefits dispute between a large municipal county with a strong mayor and the sheriff's department for the co

#### Basic controllable variables of production planning

What are the basic controllable variables of a production planning problem? What are the four major costs? Discuss and explain each variable. Discus and explain each cost.