Calculate the value of expected value, Mathematics

Assignment Help:

The owner of TMH Hospital wants to open a new facility in a certain area. He usually builds 25-, 50-, or 100-bed facilities, depending on whether anticipated demand is low, medium or high. On the basis of his past experience, the probabilities of low demand, Medium demand and high demand are estimated as 0.1, 0.4and 0.5 and the short-range payoffs in Rs are calculated as follows.

Demand Acts
Build 25 bed Build 50 bed Build 100 bed

Low                  30,000                -20,000               -40,000
Medium            35,000                 50,000               -10,000
High                 40,000                 55,000                75,000

1) What would be the best decision?

2) What is the value of Expected Value of Perfect Information?

 


Related Discussions:- Calculate the value of expected value

Division of two like terms, Case 1: Suppose we have two terms 8ab and 4ab. ...

Case 1: Suppose we have two terms 8ab and 4ab. On dividing the first by the second we have 8ab/4ab = 2 or 4ab/8ab = (1/2) depending on whether we consider either 8ab or 4ab as the

Concepts, what are core concepts of marketing?

what are core concepts of marketing?

Question, Hi I have a maths question related to construction as its a cons...

Hi I have a maths question related to construction as its a construction management course...i could send some example sheets too...could it be done?

Find the probability of having 53 sundays in leap year , Find the probabili...

Find the probability of having 53 Sundays in (i) a leap year                           (ii) a non leap year       (Ans:2/7 , 1/7 ) Ans:          An ordinary year has 365 da

Practical geometry, Ask question draw a line parallel to given line xy at a...

Ask question draw a line parallel to given line xy at a distance of 5cm from it #Minimum 100 words accepted#

Help, draw a right angle isosceles triangle with 9 triangles in it

draw a right angle isosceles triangle with 9 triangles in it

Test of hypothesis on proportions, Test Of Hypothesis On Proportions It...

Test Of Hypothesis On Proportions It follows a similar method to the one for means except that the standard error utilized in this case: Sp = √(pq/n)  Z score is computed

Congruence, a) Let n = (abc) 7 . Prove that n ≡ a + b + c (mod 6). b) U...

a) Let n = (abc) 7 . Prove that n ≡ a + b + c (mod 6). b) Use congruences to show that 4|3 2n   - 1 for all integers n ≥ 0.

The sum of the clock, how many times In a 12 hour period will he numbers ad...

how many times In a 12 hour period will he numbers add up to 6? (hint 3:00 is one answer0

Famous Numbers, Do you provide the answers to the Famous Numbers Exercise?

Do you provide the answers to the Famous Numbers Exercise?

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