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

Linear programming, As office manager of her firm, Marcellyne has been dir...

As office manager of her firm, Marcellyne has been directed to buy new filing cabinets. She knows that cabinet A costs $10, requires 6 square feet of floor space, and holds 9 cubic

Algebra, If a^n+1 + b^n+1/a^n + b^n is the arithmetic mean of a and b then ...

If a^n+1 + b^n+1/a^n + b^n is the arithmetic mean of a and b then find n. Answer:Arithmatic mean of a,b is =(a+b)/2  from the problem (a+b)/2=(a^n+1 +b ^n+1)/(a^n+b^n)  then (a+

Surface area- applications of integrals, Surface Area- Applications of inte...

Surface Area- Applications of integrals In this part we are going to look again at solids of revolution. We very firstly looked at them back in Calculus I while we found the

Are parrellel meet at infinity?, no the parallel lines do not meet at infin...

no the parallel lines do not meet at infinity because the parallel lines never intersect each other even at infinity.if the intersect then it is called perpendicuar lines

Surds, I wanted to know what are surds.please explain with an example.

I wanted to know what are surds.please explain with an example.

Dynamath, The canister of the nerf super soaker washout holds 22 ounces of ...

The canister of the nerf super soaker washout holds 22 ounces of water. say you use 1/2 of the water. how much water is left in the canister

Pre kg, my daughter in kg now how can i train her to develop skills in unde...

my daughter in kg now how can i train her to develop skills in undertanding the basics of all subjects how can i start teaching other than schol

Ineqaulites, how to work out inequalities with negative signs?

how to work out inequalities with negative signs?

Find the ratio of line segment, Find the ratio in which the line segment jo...

Find the ratio in which the line segment joining A(6,5) and B(4,-3) is divided by the line y=2           (Ans:3:5) Ans :   Let the ratio be k:1 x = 4 k + 6/ k +1 y

Eometyr, Lines EF and GH are graphed on this coordinate plane. Which point ...

Lines EF and GH are graphed on this coordinate plane. Which point is the intersection of lines EF and GH?

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