Problem_Session_6_-_Example_1

03 009 015 021 027 033 039 045 051 057 063 069 075

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Unformatted text preview: 0.63 0.69 0.75 0.81 0.87 0.93 0.99 0.00 0.06 0.12 0.18 0.24 0.30 0.36 0.42 0.48 0.54 0.60 0.66 0.72 0.78 0.84 0.90 Best 0.96 Proba of Red Ball Sensitivity to Gamma $800 $700 $600 Certain Equivalent $500 $400 $300 $200 $100 Deal A Deal B Deal C $0 -0.07 -0.06 -0.05 -0.04 -0.03 -0.02 -0.01 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 Gamma Decision Tree for Free Clairvoyance Deal A 0.75 0.7 Red Ball 70 >>> Deal B 2 1 Deal C 0.50 0.85 $850 Deal A 0.40 0.3 White Ball 3 0.5 >>> Deal C 0.50 0.00 Deal B 1.00 Free Clairvoyance ---> Unfold to reveal sensitivity to Proba of Red Proba of Red 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.20 0.21 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.30 0.31 0.32 0.33 0.34 0.35 0.36 0.37 0.38 0.39 VFC $850 $500 $505 $510 $515 $520 $525 $530 $535 $540 $545 $550 $555 $560 $565 $570 $575 $580 $585 $590 $595 $600 $605 $610 $615 $620 $625 $630 $635 $640 $645 $650 $655 $660 $665 $670 $675 $680 $685 $690 $695 VoC $150 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95 $100 $105 $110 $115 $120 $125 $130 $135 $140 $144 $145 $147 $148 $150 $151 $153 $154 $156 $157 $159 $-value $750 u-value 0.75 $1,000 1.00 $500 0.50 $400 0.40...
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