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Consider the decision tree shown below which is for deciding on whether we should do a project. Use the backward method and calculate the eV
Consider the decision tree shown below which is for deciding on whether we should do a project. Use the backward method and calculate the eV bound your answer to the nearest integer. The cost of sample Information (x) in Dollars is 40. Positive values show profit and negative values show cost. Try to maximise pront, SO Withdray $ 500 Success 0.25 0.75 No sample info Failure S-100 Do the project Withdraw -SX $ 500-X Success 0.10 0.90 Failure S-100-X Do the project Getting sample information at the cost of SX Bad 0.45 results S-X Withdraw 0.55 Good results S 500-X Success 0.80 Do the project 0.20 Failure S-100-X Question 3 In the previous problem what is EVSI? Question 4 What is EVPL in Dollars? Round your answer to the nearest integer. Question 5 20 pts Assume that our utility function is defined as xx. For how much cash we would be indifferent between doing this project and receiving that cash in other words if we receive more than this value we are willing to give up and not do the project. Assume that on the decision tree shown in Problem 2, X - 216. Round your answer to the nearest Integer Consider the decision tree shown below which is for deciding on whether we should do a project. Use the backward method and calculate the eV bound your answer to the nearest integer. The cost of sample Information (x) in Dollars is 40. Positive values show profit and negative values show cost. Try to maximise pront, SO Withdray $ 500 Success 0.25 0.75 No sample info Failure S-100 Do the project Withdraw -SX $ 500-X Success 0.10 0.90 Failure S-100-X Do the project Getting sample information at the cost of SX Bad 0.45 results S-X Withdraw 0.55 Good results S 500-X Success 0.80 Do the project 0.20 Failure S-100-X Question 3 In the previous problem what is EVSI? Question 4 What is EVPL in Dollars? Round your answer to the nearest integer. Question 5 20 pts Assume that our utility function is defined as xx. For how much cash we would be indifferent between doing this project and receiving that cash in other words if we receive more than this value we are willing to give up and not do the project. Assume that on the decision tree shown in Problem 2, X - 216. Round your answer to the nearest Integer
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