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:
Facilitated diffusion and active transport both utilize proteins to transport substances across membranes. Differences between active transport and facilitated diffusion 1. Active transport requires an input of energy, usually ATP, while facilitated transport does not.
The accurate description of the process of erosion is when <span>moving bits of rock and soil across the earth’s surface by water, wind, or glaciers. The answer is letter C.</span>
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Answer:
<em>B) The disturbance of particles in an area.</em>
Explanation:
<em>A wave involves transmission of energy from one place to another by the actual disturbance of the particles of the medium.</em>
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