Question

In: Statistics and Probability

Option Low Moderate High Hire $ (250,000) $ 100,000 $ 625,000 Subcontract $ 100,000 $ 150,000...

Option Low Moderate High

Hire $ (250,000) $ 100,000 $ 625,000

Subcontract $ 100,000 $ 150,000 $ 415,000

Do Nothing $ 50,000 $ 80,000 $ 30,000

Demand Low Moderate High

Probabilities 25% 50% 25%

I need help answering the following questions using the payoff matrix above.

a) Determine the decision based on Maximin

b) Determine the decision based on Maximax

c) Determine the decision based on the expected monetary value (EMV).

d) Determine the decision based on Minimax Regret

e) Determine the decision based on expected opportunity loss (EOL).

f) Determine the expected value of perfect information (EVPI)

Solutions

Expert Solution


Related Solutions

A sandwich shop needs to hire sandwich makers. It can hire low productivity workers (x1), high...
A sandwich shop needs to hire sandwich makers. It can hire low productivity workers (x1), high productivity workers (x2), or a combination of both. The firm’s production function is: f(x1, x2) = x1+2x2 a) What kind of production function does the firm have? b) The firm is willing to pay low productivity workers $15/hour. What is the most it would be willing to pay high productivity workers if it is to hire any high productivity workers? c) Suppose the firm...
Jackie owns four houses with land values at: $100,000, $150,000, $180,000 and $250,000 (a total land...
Jackie owns four houses with land values at: $100,000, $150,000, $180,000 and $250,000 (a total land value of $680,000) and has sought your help in calculating his land tax liability. Advise Jackie as to the amount payable using current rates, If all four properties were owned in the New South Wales Please answer Question 6 Part (a) here.        If all four properties were spread over 4 states (QLD. SA, WA, VIC) Please answer Question 6 Part (b) here.        If they...
Frequency of Trudeau Mentions in the Article Article Tone Low Moderate High Negative 56% 63% 49%...
Frequency of Trudeau Mentions in the Article Article Tone Low Moderate High Negative 56% 63% 49% Neutral 23 21 21 Positive 21 16 30 Total 100% 100% 100% (N) (71) (67) (53 Describe this relationship shown in the table
High Moderate Low Criterion: Report ANOVA results in APA format. Data: Use the results from Problem...
High Moderate Low Criterion: Report ANOVA results in APA format. Data: Use the results from Problem Set 4.4. Instructions: Complete the following: a. State the null hypothesis. b. Report your results in APA format (as you might see them reported in a journal article). High 10 7 8 12 6 Moderate 9 4 7 6 8 Low 9 4 6 5 7
Given is a decision payoff table. Answer all questions below. Future Demand Alternatives Low Moderate High...
Given is a decision payoff table. Answer all questions below. Future Demand Alternatives Low Moderate High Small Facility 52 42 43 Medium Facility 50 49 49 Large Facility -15 38 51 a) The best payoff for small facility is = b) The worst payoff for medium facility is = c) The average payoff for large facility is = (in 2 decimal places) d) The worst regrets for small facility is = e) The worst regrests for medium facility is =...
Low-risk investors should assume an interest rate of 6% annually. Moderate-risk investors should use 8%, high-risk...
Low-risk investors should assume an interest rate of 6% annually. Moderate-risk investors should use 8%, high-risk investors should assume 10%, and ultra high-risk investors should use 12%. For purposes of this calculation, ignore any Social Security benefit received. Assume you are 22 years old and want to be a millionaire at retirement (age 65). How much do you need to save each month to reach your goal if you are a high-risk investor? A. $117 B. $704 C. $1,688 D....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT