Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Value of perfect information
This relates to the amount that we would pay for an item of information such would enable us to forecast the exact conditions of the market and act accordingly.
The EVPI or expected value of perfect information is the expected outcome along with perfect information minus the expected outcome with no perfect information namely the maximum EMV
Illustration
From above table and described that the probabilities are Boom 0.6, steady state 0.3 and recession 0.1 then
When situations of the market are; boom launch product C: profit = 16
When situations of the market are; steady state launch product B: profit = 6
When situations of the market are; recession launch product B: profit = 12
The expected profit along with perfect information will be
(16 x 0.6) + (6 x 0.3) + (12 x 0.1) = 12.6
Our expected profit choosing product C is 7
The maximum price that we would pay for perfect information is 12.6 - 7 = 5.6
Q. What is Combination Formula? Ans. The difference between combinations and permutations is that permutations take ordering into consideration, whereas combinations do no
Statistical estimation This is the procedure of using statistic to estimate a population parameter This is divided into point estimation whereas an estimate of a population
Five years ago a business borrowed $100,000 agreeing to repay the principal and all accumulated interest at 8% pa compounded quarterly, 8 years from the loan date. Two years after
Noah is renewing a magazine subscription. one package offers to renew the magazine for 3 years for 26$. A second package offers to renew the magazine for 5 years for $38
what is the LCM of 18, 56 and 104 show working
The time in seconds that it takes for a sled to slide down a hillside inclined at and angle θ is where d is the length of the slope in metres. Find the time it takes to sli
show that one of the straight lines given by ax2+2hxy+by2=o bisect an angle between the co ordinate axes, if (a+b)2=4h2
how to simplify fractions
In a survey of 85 people this is found that 31 want to drink milk 43 like coffee and 39 wish tea. As well 13 want both milk and tea, 15 like milk & coffee, 20 like tea and coffee
Find the derivatives of the following functions a) y = 5x 4 +3x -1-x 3 b) y = (x+1) -1/2 c) y= e x2+1 d) y= e 3x lnx e) y =ln(x+1/x)y
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd