Probability of economic conditions changes

Assignment Help Business Management
Reference no: EM131547936

Management at Washington Hospital Center is thinking about two investments. One is an MRI machine, which can make $ 100,000 in good economic conditions or $ 60,000 in bad economic conditions. Another is a CT scanner, which can make $ 150,000 in good economic conditions or $ 10,000 in bad economic conditions. Thus the decision depends on the economic conditions. What is the probability of good economic conditions that equates the two investments?

a. Develop a payoff table for this situation.

b. Find the following:

1. Maximax

2. Maximin

3. Equal likelihood

4. Minimax regret

c. Create a sensitivity graph comparing the different alternatives as the probability of economic conditions changes.

Book:

Kros, John F.; Brown, Evelyn C. (2012-12-12). Health Care Operations and Supply Chain Management: Operations, Planning, and Control (pp. 194-195). Wiley.

Reference no: EM131547936

Questions Cloud

What is the object-the model in econometrics : What is the object, the model in econometrics - ive an interpretation of R2 and F-test result - equations for the regression coefficients formulas for estimates
What do you think about corn to ethanol process and industry : What do you think about corn to ethanol process, industry? Is it something positive or negative? It is cheaper to produce ethanol from sugar cane or corn. Why?
Dividends was paid to shareholders : How much in dividends was paid to shareholders during the year?
Calculate collection period rate : Calculate collection period rate
Probability of economic conditions changes : Create a sensitivity graph comparing the different alternatives as the probability of economic conditions changes.
Amount of interest you will end up up paying over four years : Assuming you make the payments as agreed what is the total amount of interest you will end up up paying over the four years?
Determine the steps that can be taken to mitigate the risk : Aetermine the steps that can be taken to mitigate these risks. The controls identified should be cost-effective based on the overall risk level assessed.
The next reform that will impact healthcare : The next reform that will impact healthcare is___________________.
Extremely fast data-collection products : A company makes extremely fast data-collection products for research labs around the world using Hadron colliders.

Reviews

Write a Review

Business Management Questions & Answers

  Describe the steps used by the salesperson

Describe the steps used by the salesperson. Did the salesperson skip any steps? What did the salesperson do well? Not so well?

  Organizational design elements

How well were the organizational design elements in your present or a previous organization aligned? Provide examples to support your evaluation.

  What is the current yield and the yield to maturity

A $1,000 zero coupon bonds sells for $519 and matures after five years. What is the current yield and the yield to maturity?

  Article reports about the presentation

Monitoring expenses, and supervising all operational aspects of the company.

  Articles from the background materials

For this assignment take a close look at the four required articles from the background materials these include Mortenson (2014), Cialdini (2001), Conger (1998), and Fracaro (2002).

  Committed an intentional tort against property

Two sisters, Darla and Irene, are partners in an import business located in a small town in Rhode Island. Irene is married to a well-known real estate developer

  Functional areas of an elementary school

Functional areas of an elementary school - Find how the functional areas of an elementary school (direct client service/programs, fundraising, operations, internal communications,

  Are whistle-blowers adequately protected

Are whistle-blowers adequately protected? Explain your Answer in detail.

  Post addresses how to report various ietmsmanagement

post addresses how to report various ietms.management reporting. for each of the following issue classify them

  What should the market price of the stock be

The last dividend that Ryder, Inc. paid was $1.75, investors expect the company's growth rate to be 4% and require 16% to invest in the company. What should the market price of the stock be?

  What you prefer to have most to least to establish business

You have decided to open a business in Tijuana, Mexico (a developing county). Please order the tool boxes below in order of what you would prefer to have most to least" in order to establish and sustain your business.

  What are components of group diversity

How do roles, needs, and diversity affect teamwork? Provide specific examples.

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