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

Differential equations, There isn't actually a whole lot to this section th...

There isn't actually a whole lot to this section this is mainly here thus we can get several basic concepts and definitions out of the way.  Most of the concepts and definitions in

Compare and contrast african immigrants, Compare and contrast African immig...

Compare and contrast African immigrants with our immigrant groups? How are they different? What are the implications of these differences for their adjustment to the larger society

The square of a positive number is 49 what is the number, The square of a p...

The square of a positive number is 49. What is the number? Let x = the number.  The sentence that is , "The square of a positive number is 49," translates to the equation x 2

Indeterminate form, Indeterminate form : The 0/0 we initially got is calle...

Indeterminate form : The 0/0 we initially got is called an indeterminate form. It means that we don't actually know what it will be till we do some more work.  In the denominator

Topological spease, let X be a nonempty set. let x belong to X. show that t...

let X be a nonempty set. let x belong to X. show that the collection l={ union subset of X : union = empty or belong U

Who had the highest batting average, Mike, Dan, Ed, and Sy played together ...

Mike, Dan, Ed, and Sy played together on a baseball team. Mike's batting average was 0.349, Dan's was 0.2, Ed's was 0.35, and Sy's was 0.299. Who had the highest batting average?

Sum of a number of terms in g.p., We know that the terms in G.P. are:...

We know that the terms in G.P. are: a, ar, ar 2 , ar 3 , ar 4 , ................, ar n-1 Let s be the sum of these terms, then s = a + ar + ar 2

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