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Question 27 The owner of a small business is considering three options: buying a computer, leasing a computer, or getting along without a computer. Based on the information obtained from the firm's accountant, the following payoff table (in terms of net profit) was developed: State of Nature State # 1 State # 2 State # 3 Alternative (S1) (S2) (S3) A1 4. 6. A2 7. 1 A3 6. Based on the probability for each state of nature in previous question(the probability for S1 to happen equals the probability of S2; the probability for S2 to happen is three times of S3). What is the EVPI? 1.14 O Can't be computed with the given information O 5.29 6.42

Question 27 The owner of a small business is considering three options: buying a computer, leasing a computer, or getting along without a computer. Based on the information obtained from the firm's accountant, the following payoff table (in terms of net profit) was developed: State of Nature State # 1 State # 2 State # 3 Alternative (S1) (S2) (S3) A1 4. 6. A2 7. 1 A3 6. Based on the probability for each state of nature in previous question(the probability for S1 to happen equals the probability of S2; the probability for S2 to happen is three times of S3). What is the EVPI? 1.14 O Can't be computed with the given information O 5.29 6.42

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.CR: Chapter 12 Review
Problem 10CR
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Question 27 The owner of a small business is considering three options: buying a computer, leasing a computer, or getting along without a computer. Based on the information obtained from the firm's accountant, the following payoff table (in terms of net profit) was developed: State of Nature State # 1 State # 2 State # 3 Alternative (S1) (S2) (S3) A1 4 6. A2 1 A3 6 Based on the probability for each state of nature in previous question(the probability for S1 to happen equals the probability of S2; the probability for S2 to happen is three times of S3). What is the EVPI? 1.14 O Can't be computed with the given information O 5.29 6.42
Transcribed Image Text:Question 27 The owner of a small business is considering three options: buying a computer, leasing a computer, or getting along without a computer. Based on the information obtained from the firm's accountant, the following payoff table (in terms of net profit) was developed: State of Nature State # 1 State # 2 State # 3 Alternative (S1) (S2) (S3) A1 4 6. A2 1 A3 6 Based on the probability for each state of nature in previous question(the probability for S1 to happen equals the probability of S2; the probability for S2 to happen is three times of S3). What is the EVPI? 1.14 O Can't be computed with the given information O 5.29 6.42
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Calculus For The Life Sciences
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ISBN:
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