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

Geometry of arcs, how to divide an arc in three equal parts

how to divide an arc in three equal parts

Terminology of polynomial, Terminology of polynomial Next we need to ge...

Terminology of polynomial Next we need to get some terminology out of the way. Monomial polynomial A monomial is a polynomial which consists of exactly one term.

Homework, How do you simplify 10:30:45

How do you simplify 10:30:45

Word problem, On a canoe trip. a person paddled upstream against the curren...

On a canoe trip. a person paddled upstream against the current ata an average of 2mi/h. the return trip with the current at 3mi/h. Need to find the paddling spped in still water an

Find area of y = 2 x2 + 10 and y = 4 x + 16, Find out the area of the regio...

Find out the area of the region bounded by y = 2 x 2 + 10 and y = 4 x + 16 . Solution In this case the intersection points (that we'll required eventually) are not going t

What is the probability that the dart will land in the shade, In the adjoin...

In the adjoining figure a dart is thrown at the dart board and lands in the interior of the circle. What is the probability that the dart will land in the shaded region. A

Trigonometry, If tanA+sinA=m and m2-n2 = 4vmn, show that tanA-sinA=n

If tanA+sinA=m and m2-n2 = 4vmn, show that tanA-sinA=n

GEOMETRY, DIFFERENCE BETWEEN RIGHT ANGLE AND SCALENE

DIFFERENCE BETWEEN RIGHT ANGLE AND SCALENE

Find the quadratic polynomial, Find the Quadratic polynomial whose sum and ...

Find the Quadratic polynomial whose sum and product of zeros are √2 + 1, 1/ √2 + 1 Ans:    sum = 2  √2 Product = 1 Q.P = X 2 - (sum) x + Product ∴ x 2 - (2 √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