Based on the following payoff table, the expected value of perfect information is:
Alternative |
Yes |
No |
Small |
10 |
30 |
Medium |
20 |
40 |
Medium Large |
30 |
45 |
Large |
40 |
35 |
Extra Large |
60 |
20 |
Prior Probability |
0.3 |
0.7 |
a). 4.5
b). 9
c). 40.5
d). 49.5
e). 60
Based on the following payoff table, the expected value of perfect information is: Alternative Yes No Small 10 30 Medium 20 40 Medium Large 30 45 Large 40 35...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands: States of Nature Demand Alternatives Low Medium High Alternative A 80 120 140 Alternative B 70 90 100 Alternative C 30 60 120 Probability 0.4 0.3 0.3 What will be the expected value of perfect information (EVPI) for this situation?
Based on the following payoff table, answer the following: Alternative High Low 90 -10 Buy 70 40 Rent 60 Lease 55 Prior Probability 0.4 0.6 The maximin strategy is: Multiple Choice Lease. Buy. High. Rent. Low.
The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands: States of Nature Demand Alternatives Low Medium High Alternative A 80 120 140 Alternative B 70 90 100 Alternative C 30 60 120 Probability 0.4 0.3 0.3 What will be the expected value of perfect information (EVPI) for this situation? 2. Given the following gasoline data: Quarter Year 1 Year 2 1 95 105 2 85 95 3...
Based on the following payoff table, answer the following: Alternative Buy Rent High Low 90 -10 70 40 60 55 0.4 0.6 Lease Prior Probability The Bayes' decision rule strategy is: 1 Multiple Choice 0 Lease. 0 Rent. 0 Buy. 0 Low. 0 High.
The following is a payoff table giving profits for various situations. States of Nature Alternatives 100 12 Alternative 1 10 20 lternative 2 12 140 120 Alternative 3 Do Nothing The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a perfect forecast of the future were available, what is the expected value with this perfect information? C) 154 A) 130 D) 36 B) 160 The following is a payoff table giving profits...
3.2) The following payoff table provides profits based on various possible decision alternatives and various levels of demand. States of Nature Demand Alternatives Alternative 1 Alternative 2 Alternative 3 Low Medium High 75 90 50 120 90 70 140 90 120 The probability of a low demand is 0.4, while the probability of a medium demand is 0.4 and high demand is 0.2 (a) What decision would an optimist make? (b) What decision would a pessimist make? (c) What is...
Quantitative Methods (STAT-201) Q3 . A manager is deciding whether or not to build a small facility. Demand is uncertain and can be either at a high or low level. If the manager chooses a small facility and demand is low, the payoff is $30. If the manager chooses a small facility and demand is high, the payoff is $10. On the other hand, if the manager chooses a large facility and demand is low, the payoff is -$20, but...
Three decision makers have assessed payoffs for the following decision problem (payoff in dollars). Decision Alternative State of Nature s1 s2 s3 d1 15 40 –20 d2 60 80 –80 The indifference probabilities are as follows: Indifference Probability (p) Payoff Decision Maker A Decision Maker B Decision Maker C 80 Does not apply Does not apply Does not apply 60 0.7 0.95 0.85 40 0.5 0.9 0.7 15 0.3 0.8 0.55 –20 0.15 0.6 0.35 –80...
QUESLUIT AU PRIL Consider the following payoff table: DA: Decision Alternative. State of Nature Decision Alternative Good Bad Probabilities 0.6 0.4 IDAI 5 -3 DA2 3 2 What is the expected value of perfect Information (EVPI)? (Please keep 1 decimal for your answer) Your Answer: Answer Question 17 (1 point) What will be the MAPE (Mean Absolute Percent Error) of the table below? (Round your answer to 2 decimal places, keep in decimal format) Three period moving average Period Sales($millions)...
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff (profit in thousands of dollars) table based on whether a business will be brisk, medium, or slow. Business Level Decision Brisk Medium Slow ──────────────────────────────────────── Buy 90 50 30 Rent 50 60 45 Lease 40 55 50 Assume that the probability of a brisk business level is 0.4, the probability of a medium business level is 0.4 and...