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

Pre-calculus, Give all solutions between o degree and 360 degree for sin x=...

Give all solutions between o degree and 360 degree for sin x=3/2

Drug administration, A drug is administrated once every four hours. Let D(n...

A drug is administrated once every four hours. Let D(n) be the amount of the drug in the blood system at the nth interval. The body eliminates a certain fraction p of the drug duri

Regression coefficient, 4x+3y+7=0 and 3x+4y+8=0 find the regression coeffic...

4x+3y+7=0 and 3x+4y+8=0 find the regression coefficient between bxy and byx.

Determine the length of the longer base, The longer base of a trapezoid is ...

The longer base of a trapezoid is 3 times the shorter base. The nonparallel sides are congruent. The nonparallel side is 5 cm more that the shorter base. The perimeter of the trape

Find out the interval of validity, Without solving, find out the interval o...

Without solving, find out the interval of validity for the subsequent initial value problem. (t 2 - 9) y' + 2y = In |20 - 4t|,   y(4) = -3 Solution First, in order to u

Law of Cosines, The law of cosines can only be applied to acute triangles. ...

The law of cosines can only be applied to acute triangles. Is this true or false?

Coordinate geometry, find the value of x for which the distance between the...

find the value of x for which the distance between the points p(4,-5) and q(12,x) is 10 units

How much sales tax did she pay if items was 6 percent, Lindsay purchased a ...

Lindsay purchased a pocketbook for $45 and a pair of shoes for $55. The sales tax on the items was 6%. How much sales tax did she pay? Find out the price of the two items toget

Introduction to learning to count, INTRODUCTION : Most of us, when plannin...

INTRODUCTION : Most of us, when planning the first mathematical experience for three-year olds, think in terms of helping them memorise numbers from 1 to 20. We also teach them to

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