Scribd Logo
Upload

Welcome to Scribd!

  • L2 - AC - Residence Inn Sensitivity Graph W Data Table

    Uploaded by

    Sayanta Roy
    10 views3 pages
    The document presents a decision problem with two options: Buy A or Buy B. It shows the payoffs for each option under two possible states of nature (Probability = 0 or 1) and calculates the expected values. It determines that the highest expected value is to Buy B.

    Original Description:

    Original Title

    L2 - AC - Residence Inn Sensitivity Graph w Data Table

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document presents a decision problem with two options: Buy A or Buy B. It shows the payoffs for each option under two possible states of nature (Probability = 0 or 1) and calculates the expected values. It determines that the highest expected value is to Buy B.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views3 pages

    L2 - AC - Residence Inn Sensitivity Graph W Data Table

    Uploaded by

    Sayanta Roy
    The document presents a decision problem with two options: Buy A or Buy B. It shows the payoffs for each option under two possible states of nature (Probability = 0 or 1) and calculates the expected values. It determines that the highest expected value is to Buy B.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Probability Buy A Buy B Buy A and Buy none

    0 -12 11 -1 0
    1 13 -8 5 0

    Probability of A Expected Values


    0.1 -9.5 9.1 -0.4 0
    Buy A Buy B Buy A and Buy none Chart Title
    Highest EV 9.1 Buy A Buy B Buy A and B Buy none

    Decision Buy B 15

    10
    Probability of A Buy B
    0 5
    0.1

    Axis Title
    0.2 0
    0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
    0.3 -5
    0.4
    0.5 -10
    0.6
    -15
    0.7
    0.8 Axis Title

    0.9
    1
    ProbabilityBuy A Buy B Buy A and B
    0.5 -12 11 -1
    0.5 13 -8 5

    EV 0.5 1.5 2

    art Title
    Buy A and B Buy none Buy A Buy B Buy A and B
    P(A) 0.5 1.5 2
    0 -0.5
    0.1 0
    0.2 0.5
    0.3 1
    0.4 0.5 0.6 0.7 0.8 0.9 1 0.4 1.5
    0.5 2
    0.6 2.5
    0.7 3
    0.8 3.5
    0.9 4
    Axis Title 1 4.5
    Buy none
    0
    0

    None
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0

    You might also like