The decision tree costs and benefits of present value, Basic Statistics

Question:

Imagine that your client, Hillside County Forest Preserve (HCFP), is considering how best to protect their natural lagoons.  They have asked for your help, and you have found the following/

  • If they do nothing, the lagoons are sure to deteriorate and have a societal cost of $100,000
  • If they enact an experimental new program, called Lagoon Preservation Project ("LPP"), then there is a 50% chance that it will be successful, yielding a societal benefit of $70,000. There is a 50% chance it will not be successful, causing further harm to the lagoons, yielding a societal cost of $150,000
  • Enacting LPP will cost $10,000

Assume all costs and benefits above are expressed in present values.

a.  Which option has the higher expected benefit to society? Show the decision tree that supports your answer.

b.  What would the likelihood of success of LPP need to be for enacting it to have the same Expected Value as not enacting it?

Posted Date: 2/16/2013 7:52:07 AM | Location : United States






Your posts are moderated
Related Questions
how cost classification can helpful for planning, controlling and decision making

2. Two disks, each of radius 10.0 cm, are charged so that one has a charge of +10.0 nC and the other has a charge of -10.0 nC. The disks are then placed with their flat faces facin

This week, you have learned about how to use Cronbach's alpha as a measure of scale reliability. In this Application, you will calculate Cronbach's alpha for provided data. To p


following the hight of studen 155,153,168,160,162,166,167,180,257,165,

Volumes due to personal individuals or companies for products and/or services obtained by the state. Records Due does not involve amounts due to other companies, resources, or othe

i need help it says for the tables of values determine appropriate veiwing window, create a scatter plot, write a function rule, and graph your funtion rule over your scatter plot

MEASURES OF CENTRAL TENDENCY: 1) What do you mean by the term "Statistics"? Also state the importance of statistics. 2) What is the difference between mean, median and mode

Circular motion  is termed as when an object experiences the right amount of  net force which is  directed toward the center of the circle / curve. The net acceleration of an objec

(b) P(X = 8)