Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

describe expected profit using decision tree:

ING's Consulting Solution division has been loomed by the North Carolina Regional Airport Authority about a difficult problem with overcrowding at the Charlotte airport there are three different options under consideration:

1. The airport could be completely redesigned and rebuilt at a cost of $8.2M. The present value of amplified revenue from a new airport is in problem. There is a 70% probability that this present value would be $11.0M, a 20% probability the present value would be $5.0M, and a 10% probability that the present value would be $1.0M contingent on whether the new airport is a success a moderate success or a failure.

2. The airport could be remodelled with a new runway for a cost of $4.7M. The present value of the amplified revenue would be $6 0M (with a probability of 0.8) or $3.0M (with a probability of 0.2).

3. They could do nothing with the airport as well as suffer a loss of revenue of either $1 .OM (65% chance) or $4.0M (35% chance).

Draw a decision tree as well as select the option that will maximize the present value.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M923455

Have any Question? 


Related Questions in Statistics and Probability

The following electoral method is used to choose the mayor

The following electoral method is used to choose the mayor of Whoville: Every resident ranks the candidates from most preferred to least preferred, and places this ranked list in a ballot box. Each candidate receives a n ...

Please show the work to make it understandablea large

Please show the work to make it understandable A large company is interested in knowing whether there is any relationship between a person's age and that person's opinion about a new wage incentive plan. A random sample ...

The borda and condorcet methods- the following example was

The Borda and Condorcet Methods :- The following example was presented by Condorcet, in a critique of the Borda Method. A committee composed of 81 members is to choose a winner from among three candidates, A, B, and C. T ...

Carter motor company claims that its new sedan the libra

Carter Motor Company claims that its new sedan, the Libra, will average better than 24 miles per gallon in the city. Use μ, the true average mileage of the Libra. Express the null hypothesis and the alternative hypothesi ...

Write a two-to three-page short paper 10 percent of your

Write a two-to three-page short paper (10 percent of your total grade) comparing and contrasting the presentation of a historical event by two different historians. Historians do not only provide accounts of events (them ...

Net exports are calculated by subtracting imports from

Net Exports are calculated by subtracting Imports from Exports. Assume Exports and Imports are independent of one another.  If mean exports are $25M with a standard deviation of $3.5M and mean imports are $30M with a sta ...

1 how does the sample size influence the extent to which

1. How does the sample size influence the extent to which the sample data can be used to accurately estimate population parameters? 2. What statistics are used to indicate how accurately the sample data can predict popul ...

Let f be a social welfare function satisfying the

Let F be a social welfare function satisfying the independence of irrelevant alternatives property, and let a, b be two distinct alternatives. Let P N and QN be two strict preference profiles satisfying a> Pi b ⇔ a>Q i b ...

What were the causes of the cold war also describe the

What were the causes of the Cold War? Also, describe the steps that the USA took to meet the perceived Soviet threat during the 1940s, '50s and '60s. Be sure to include the following topics: Iran crisis of 1946 Iron Curt ...

Please explain every step to make the sum understandableit

Please explain every step to make the sum understandable. It has been hypothesized that the distribution of seasonal colds in Canada is as follows: Season          Percentage Fall                    35% Winter            ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen