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

Evaluate performance of mental arithmetic maths, E 1) Try the two activitie...

E 1) Try the two activities detailed above with a few children around you Evaluate whether they really helped to improve the children's performance of mental arithmetic. Anot

Shares and dividends, suresh invested rs.1080 in shares of face value rs.50...

suresh invested rs.1080 in shares of face value rs.50 at rs.54.After receiving dividend on them at 8% he sold them at 52.In each of the transaction he paid 2 % brokerage.Hpw much d

Detemine multiplying a polynomial by a monomial, Detemine Multiplying a Pol...

Detemine Multiplying a Polynomial by a Monomial? To multiply a polynomial by a monomial, use the distributive property. Let's start by talking about ordinary numbers. Say th

Error in measurement, what is actual error and how do you calculate percen...

what is actual error and how do you calculate percentage error

Equation, Solve : 4x2+2x+3=0 Ans) x^2 + (1/2)x = -(3/4) (x+1/4)^2 = 1/...

Solve : 4x2+2x+3=0 Ans) x^2 + (1/2)x = -(3/4) (x+1/4)^2 = 1/16 - 3/4 = -11/16 implies x = (-1+i(11)^(1/2))/4 and its conjugate.

Find inverse laplace transform, Question: Find Inverse Laplace Transfor...

Question: Find Inverse Laplace Transform of the following (a) F(s) = (s-1)/(2s 2 +8s+13)     (b) F(s)= e -4s /(s 2 +1) + (1/s 3 )

Solve the radical form, Simplify following. Suppose that x, y, & z are posi...

Simplify following. Suppose that x, y, & z are positive.                      √ y 7 Solution In this case the exponent (7) is larger than the index (2) and thus the fir

Solve the limit problem, Solve the Limit problem as stated  Limit x tends...

Solve the Limit problem as stated  Limit x tends to 0 [tanx/x]^1/x^2 is ? lim m tends to infinity [cos (x/m)] ^m is? I need the procedure of solving these sums..

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