Question

What is the EVPI? Success Moderate Success Failure Probability 0.3 0.3 0.4 Sell Company 107 107...

What is the EVPI?

Success

Moderate Success

Failure

Probability

0.3

0.3

0.4

Sell Company

107

107

107

Form Joint Venture

210

120

89

Sell Software on own

420

234

-100

Number: Round to: 1 decimal places.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

E(sell company) =0.3*107+0.3*107+0.4*107 =107

E(from Joint Venture )=134.6

E(sell software) =156.2

tehrefore expected value without information ,max(107,134.6,156.2) =156.2

expected value with perfect information=0.3*420+0.3*234+0.4*107=239

hence EVPI =239-156.2 =82.8

Add a comment
Know the answer?
Add Answer to:
What is the EVPI? Success Moderate Success Failure Probability 0.3 0.3 0.4 Sell Company 107 107...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT