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







Related Discussions:- The decision tree costs and benefits of present value, Assignment Help, Ask Question on The decision tree costs and benefits of present value, Get Answer, Expert's Help, The decision tree costs and benefits of present value Discussions

Write discussion on The decision tree costs and benefits of present value
Your posts are moderated
Related Questions
Use the “best subsets” method to identify a “best” model for the data. Explain what you think is the best model and why.

Find Karl Pearson's correlation coefficient between the sales and expenses from the data given below:

Questions 1.  What would be the appropriate statistical procedure to test the following hypothesis:  "Triglyceride values are a good predictor of weight in obese adults." 2.

Capitalization policy The criteria used to decide which capital outlays should be reported as capital assets on the whole state are financial statements,

customer behaviour in accounting felid of study

difference betwen histogram and historigram

what are the types of sampling errors and their causes?

What are the major advantages of the Single Entry System? Ans. A Single Entry system is considered to be the most simplest method to record the financial transaction, only cash bo

An article in the Journal of Environmental Engineering (Vol. 115, No. 3,1989, pp. 608-619) reported the results of a study on the occurrence of sodium and chloride in surface str

How can we apply matrix algebra in various decision models in business and management?