Aberystwyth University the Payoff from The Best Outcome – Assignment Help

Question Description

1.

a. Let the payoff from the best outcome, the value in cell A3, vary from \$30,000 to \$50,000 in increments of \$2500.

Don't use plagiarized sources. Get Your Custom Essay on
Aberystwyth University the Payoff from The Best Outcome – Assignment Help
Just from \$13/Page

When the payoff from the best outcome is equal to \$45,000, Decisions 1 and 3 are tied for best. Decision 3 is the best for lower payoffs, whereas Decision 1 is the best for higher payoffs.

b. Let the probability of the worst outcome for the first decision, the value in cell B5, vary from 0.7 to 0.9 in increments of 0.025, and use formulas in cells B3 and B4 to ensure that they remain in the ratio 1 to 2 and the three probabilities for decision 1 continue to sum to 1.

Decision 3 is the best for every value of the probability of the worst outcome, with the exception of a probability of 0.70 where Decision 1 is the best.

c. Use a two-way data table to let the inputs in parts (a) and (b) vary simultaneously over the indicated ranges.

Decision 3 is always the best, with the exception with probability of the worst outcome equal to 0.

Questions 2-6 (15 points)

2. The mean of the probability distribution is also called the: expected value (d)

3. Expected monetary value (EMV) is: the weighted average of possible monetary values, weighted by their probabilities (c).

4. In decision trees, EMVs are calculated through a “folding back” process (d).

5. In a single-stage decision tree problem, you make decisions first and then all you wait to see an uncertainty outcome (a).

6. Expected monetary value is the weighted sum of the possible monetary outcomes [True]

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.