Quatitative methods, Advanced Statistics

Assignment Help:
An oil company is considering whether or not to bid for an offshore drilling contract. If they bid, the value would be $600m with a 65% chance of gaining the contract. The company may set up a new drilling operation or move its already existing operation, which has proved successful to the new site. The probability of success and expected returns (in $m) are as follows:



If the company does not bid or lose the contract, they can use the $600m to modernize their operations. This would result in a return of either 5% or 10% on the sum invested with probabilities 0.45 and 0.55 respectively.

With the aid of a decision tree, prepare a detailed quantitative report advising the company on the best course of action.

Related Discussions:- Quatitative methods

Chains of infection, Chains of infection : The description of the course of...

Chains of infection : The description of the course of infection among the group of individuals. The susceptibles infected by the direct contact with the introductory cases are sai

Hill-climbing algorithm, Hill-climbing algorithm is  an algorithm which is ...

Hill-climbing algorithm is  an algorithm which is made in use in those techniques of cluster analysis which seek to find the partition of n individuals into g clusters by optimizin

Linearity - reasons for screening data, Linearity - Reasons for Screening D...

Linearity - Reasons for Screening Data Many of the technics of standard statistical analysis are based on the assumption that the relationship, if any, between variables is li

Markov Model, How to estimate MLE for statistical anslysis using Markov Mod...

How to estimate MLE for statistical anslysis using Markov Model?

Biplots, Biplots: It is the multivariate analogue of the scatter plots, wh...

Biplots: It is the multivariate analogue of the scatter plots, which estimates the multivariate distribution of the sample in a few dimensions, typically two and superimpose on th

Population averaged models, Population averaged models are the models for ...

Population averaged models are the models for kind of clustered data in which the marginal expectation of response variable is the main focus of interest. An alternative approach

Daycare, facts and statistics about daycare

facts and statistics about daycare

Goodmanand kruskal measures of association, Goodmanand kruskal measures of ...

Goodmanand kruskal measures of association is the measures of associations which are useful in the situation where two categorical variables cannot be supposed to be derived from

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