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

Describe the technologies that contributed to the

Describe the technologies that contributed to the development and advancement of the newspaper from small, infrequent circulations of a few brief pages to the mass production of daily, extensive pages of news.

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 ...

Tell which measures are resistant to outliers and which are

Tell which measures are resistant to outliers and which are NOT resistant to outliers from the following list, and explain WHY or WHY NOT for each measure: Mean, median, Quartiles, correlation, and standard deviation.

Imagine that you are interested in the effects of

Imagine that you are interested in the effects of background music on people's performance at work. Design an experiment in which you test the effects of classical music (played at various decibels) on employees job ...

While some countries tend to favor expansion of the

While some countries tend to favor expansion of the European Union, others generally oppose it. Entering a union agreement with other countries has both benefits and drawbacks for each member country. In what ways do you ...

Best ribs wishes to pay off a debt of 40000 in 7 years what

Best Ribs wishes to pay off a debt of $40,000 in 7 years. What amortization payment would they need to make each six months, at 6% interest compounded semiannually? (Use Table 12-2 from your text) $3,541.05 $3,910.63 $2, ...

Under what conditions is a grouped frequency distribution

Under what conditions is a grouped frequency distribution more useful as a means of describing a set of scores than a simple frequency distribution? Why do researchers often add relative frequencies to their tables?

An alternative to the experiment in q3 to investigate

An alternative to the experiment in Q.3 to investigate whether loud music tends to increase the time it takes mice to complete a maze would involve randomly assigning say, 50 mice to two groups. The 25 mice in Group A (c ...

The university is attempting to set its staffing plan for

The University is attempting to set its staffing plan for the next several year, and it wants to determine if the distribution of students among various graduate majors has changed from the historical averages which were ...

The middlecreek branch of the national bank of virginia has

The Middlecreek Branch of the national bank of Virginia has 8 real estate loans over $1,000,000. Of these 8 loans, 3 are "underwrite." A loan is underwater if the amount of the loan is greater than the value of the prope ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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