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
1.8461 km/hr Well i need more characters so i might as well type a beautiful sentence for you to read and waste your time on.
Answer:
THES IS NOT
Explanation:
THIS PAPAER IS A FAKE PAPAER BEACISE POGI TALAGA AKO
Answer:
The model, called the kinetic theory of gases, assumes that the molecules are very small relative to the distance between molecules. ... The molecules are in constant random motion, and there is an energy (mass x square of the velocity) associated with that motion. The higher the temperature, the greater the motion.
B I believe is the answer!
Hope this helps and have a great day!!!
