Calculate the value of expected value, Mathematics

Assignment Help:

The owner of TMH Hospital wants to open a new facility in a certain area. He usually builds 25-, 50-, or 100-bed facilities, depending on whether anticipated demand is low, medium or high. On the basis of his past experience, the probabilities of low demand, Medium demand and high demand are estimated as 0.1, 0.4and 0.5 and the short-range payoffs in Rs are calculated as follows.

Demand Acts
Build 25 bed Build 50 bed Build 100 bed

Low                  30,000                -20,000               -40,000
Medium            35,000                 50,000               -10,000
High                 40,000                 55,000                75,000

1) What would be the best decision?

2) What is the value of Expected Value of Perfect Information?

 


Related Discussions:- Calculate the value of expected value

Determine the height of building, A 20-foot light post shows a shadow 25 fe...

A 20-foot light post shows a shadow 25 feet long. At the similar time, a building nearby casts a shadow 50 feet long. determine the height of building? a. 40 ft b. 62.5 ft

Permutations and combinations, How many arrangements can be made from the l...

How many arrangements can be made from the letters of the word " VENUS " such that the order of the vowels remains the same?

Simultaneous linear equations (graphical method), Steps in solving graphica...

Steps in solving graphical method of simultaneous linear equations

Describe about parallel and perpendicular lines, Describe about Parallel an...

Describe about Parallel and Perpendicular Lines ? Parallel Lines : Parallel lines are coplanar lines (lines that lie in the same plane) that never intersect. The bl

Analysis, Ask question #Minimum 1Let X be a topological space, let p ? X, a...

Ask question #Minimum 1Let X be a topological space, let p ? X, and let F and ? be C-valued functions on X that are continuous at p. Then the functions F + ?, F?, |F|, ReF and ImF

Evaluate the area of circle, If the radius of a sphere is doubled, the surf...

If the radius of a sphere is doubled, the surface area is a. multiplied by 4. b. multiplied by 2. c. multiplied by 3. d. multiplied by 8. a. The formula for the surf

Scanning the demographic environment, I am working for supermarket chain an...

I am working for supermarket chain and responsible for the customer relationship management.The chain is planning to open exclusive thirst quenching service centers.These outlets w

Transportation and assignment problem, what is transportation and assignmen...

what is transportation and assignment problem. give the computer application of transportation and assignment problem

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd