Quatitative methods, Advanced Statistics

Assignment Help:
An oil company is considering whether or not to bid for an offshore drilling contract. If they bid, the value would be $600m with a 65% chance of gaining the contract. The company may set up a new drilling operation or move its already existing operation, which has proved successful to the new site. The probability of success and expected returns (in $m) are as follows:



If the company does not bid or lose the contract, they can use the $600m to modernize their operations. This would result in a return of either 5% or 10% on the sum invested with probabilities 0.45 and 0.55 respectively.

With the aid of a decision tree, prepare a detailed quantitative report advising the company on the best course of action.

Related Discussions:- Quatitative methods

Mba, Mention the characteristics of Statistics. Explain any two application...

Mention the characteristics of Statistics. Explain any two applications of Statistics.

Wilcoxon''s ranksum test, Wilcoxon's ranksum test is the distribution free...

Wilcoxon's ranksum test is the distribution free method or technique used as an alternative to the Student's t-test for assessing whether two populations have the same location. G

Probabilistic matching, Probabilistic matching is a method developed to ma...

Probabilistic matching is a method developed to maximize the accuracy of the linkage decisions based on the level of agreement and disagreement among the identifiers on different

Finite mixture distribution, The probability distribution which is a linear...

The probability distribution which is a linear function of the number of component probability distributions. This type of distributions is used to model the populations thought to

Line-intersect sampling, Line-intersect sampling is a technique of unequal...

Line-intersect sampling is a technique of unequal probability sampling for selecting the sampling units in the geographical area. A sample of lines is drawn in a study area and, w

Component bar chart, Component bar chart : A bar chart which shows the comp...

Component bar chart : A bar chart which shows the component parts of the aggregate represented by the whole length of the bar. The component parts are shown as the sectors of bar w

Length-biased data, Length-biased data is a data which arise when the prob...

Length-biased data is a data which arise when the probability that an item is sampled is proportional to its own length. A main example of this situation occurs in the renewal the

Graduation, Graduation is the term is employed most often in the applicati...

Graduation is the term is employed most often in the application of the actuarial statistics to denote procedures by which the set or group of observed probabilities is adjusted t

Whats the answers?, #ques12. There is some evidence that REM sleep, associa...

#ques12. There is some evidence that REM sleep, associated with dreaming, may also play a role in learning and memory processing. For example, Smith and Lapp (1991) found increased

File drawer problem, The problem that the studies are not uniformly probabl...

The problem that the studies are not uniformly probable to be published in the scientific journals. There is evidence that the statistical significance is a main determining factor

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