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
is this free for LIFE that means forever never ever going to pay
Q. How to calculate Probability of event? Ans. What chance do I have to toss the coin and get a head? You might think 50-50, 50%. What about tossing it 5 times and getting
A cable is attached to a pole 24 ft above ground and fastened to a stake 10 ft from the base of the pole. In sequence to remain the pole perpendicular to the ground, how long is th
when is the trnscribing process of data preparation irrelevant ? a)CAPI b) mall panel c) in home interview d) all of them
1x1
Audrey measured the width of her dining room in inches. It is 150 inches. How many feet huge is her dining room? There are 12 inches in a foot. Divide 150 by 12 to find out the
Standard Basis Vectors Revisited In the preceding section we introduced the idea of standard basis vectors with no really discussing why they were significant. We can now do
what are the advantages and disadvantages of tchebycheffs inequality theorem
two sides of an equilateral triangle have lengths 3x-1 and 3x-1. Which of 27-x or 2x-4 could be the length of the third side?
Ask question I have 2 problems I need them after 7 hours
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