Question:
The operations manager for a well-drilling company must recommend whether to build a new facility, expand his existing one, or do nothing. He estimates that long-run profits (in $000) will vary with the amount of precipitation (rainfall) as follows:
Alternative Precipitation
Low Normal High
Do nothing -100 100 300
Expand 350 500 200
Build new 750 300 0
If he feels the chances of low, normal, and high precipitation are 30 percent, 20 percent, and 50 percent respectively, What is EVPI (Expected value of Perfect Information)?
A. $140,000
B. $170,000
C. $285,000
D. $305,000
E. $475,000
Answer:
D. $170,000
Explanation:
The expected long run profits are for
Low Normal High
Do nothing -100*0.3 100*0.2 300*0.5 = 140
Expand 350*0.3 500*0.2 200*0.5 = 305
Build new 750*0.3 300*0.2 0*0.5 = 285
Therefore the expected long run profits are
$140,000
$305,000
$285,000
Based on his selected option being either to build new or to expand, the most profitable option is to expand
=$305,000
EVPI = EPPI-EMV =$170,000
Answer:
A chair at rest on the floor has two forces acting on it its own weight that pulls it downward and the floor pushing upward on the chair, both of these forces are acting on it but the net force is 0, so the chair remains at rest and its velocity stays at 0.
Answer:
it comprises of the DNA/RNA bipolymer molecules
Answer:
Keq = 2k₃
Explanation:
We can solve this exercise using Newton's second one
F = m a
Where F is the eleatic force of the spring F = - k x
Since we have two springs, they are parallel or they are stretched the same distance by the object and the response force Fe is the same for the spring age due to having the same displacement
F + F = m a
k₃ x + k₃ x = m a
a = 2k₃ x / m
To find the effective force constant, suppose we change this spring to what creates the cuddly displacement
Keq = 2k₃
