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What is the : expected values or profit for each proposed option expected opportunity loss for each proposed option the value of perfect information MedProducts
What is the :
- expected values or profit for each proposed option
- expected opportunity loss for each proposed option
- the value of perfect information
MedProducts is also considering building new facilities for one of their three largest growing divisions. The new facilities' value to the company is dependent on economic projections, categorized as strong (30% probability), fair (50% probability), or poor (20% probability). | |||
The expected value to the company (2 years from now) for each facility type, dependent on economic conditions, is given below: | |||
Product Developed | Poor Economy | Fair Economy | Strong Economy |
Health Care Systems | -$310,000 | $110,000 | $550,000 |
Monitoring Devices | -$100,000 | $129,000 | $300,000 |
Surgical Devices | -$32,000 | $100,000 | $200,000 |
No New Facility | $0 | $0 | $0 |
Expected Probability | 20% | 50% | 30% |
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