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?

Related Discussions:- The decision tree costs and benefits of present value

Historigrams and histogram, difference between historigrams and histogram

difference between historigrams and histogram

Example of inference, Q. Example of inference? Ans. Thirty student...

Q. Example of inference? Ans. Thirty students from a college were surveyed and classified according to two variables: (1) gender (M/F) and (2) major (liberal arts, busines

Evaluate the strategic value of the proposed organisation, 1) Working in yo...

1) Working in your groups analyse the organisation of information that the Facebook social networking site potentially uses. 2) Suggest the organisation of information and data

10-k report information, Where are Cash Equivalents and Marketable Securiti...

Where are Cash Equivalents and Marketable Securities noted on a 10-K report? What needs to be included as a minimum disclosure?

Inferential statistics and descriptive statistics, A team of archeologists ...

A team of archeologists have discovered the fossil skull of an extinct and exceptionally large crocodile (sarcosuchus). Unfortunately, they have not been able to fi

Defining statistics, Problem 1 Statistics plays a vital role in almost ...

Problem 1 Statistics plays a vital role in almost every facet of human life. Statistics. Explain the applications of statistics in business and management. Defining Stati

compare the quality of the different estimations, To illustrate the import...

To illustrate the importance of model selection. We will use only the first four observations to estimate the function f such that ini t. h = f(h. d) for two different models.

Methods of members, the A- frame is supported by a hinge at A and A roller ...

the A- frame is supported by a hinge at A and A roller at e

Calculate the probability of coin, Q1. If you throw a coin 5 times, what is...

Q1. If you throw a coin 5 times, what is the probability of: - throwing 5 heads - throwing 4 tails - throwing 3 heads and 2 tails Q2. Construct a tree diagram to verify your ans

Quartile Deviation, Quartile Deviation The range as a measure of dispersio...

Quartile Deviation The range as a measure of dispersion discussed above has certain limitations. It is based on two extreme items and it fails to take account of the scatter withi

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages