Problem_Session_6_-_Example_1

07 006 005 004 003 002 001 000 001 002 003 004

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Unformatted text preview: 03 -0.02 -0.01 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 Deal A $645 $745 $744 $743 $741 $738 $732 $716 $645 $514 $460 $440 $430 $424 $420 $417 Deal B $700 $995 $994 $993 $991 $988 $982 $964 $700 $120 $60 $40 $30 $24 $20 $17 Deal C $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Err:502 ID Name 0 TreePlan 1 2 3 4 5 6 7 Value 0 Prob 0 0 0 0 Pred 0 0 0 1 1 0 2 2 Kind D E E T T T T T NS 3 2 2 0 0 0 0 0 S1 1 3 7 0 0 0 0 0 S2 2 4 6 0 0 0 0 0 S3 5 0 0 0 0 0 0 0 S4 0 0 0 0 0 0 0 0 S5 0 0 0 0 0 0 0 0 Row 13 4 14 2 7 22 17 12 Col 1 5 5 9 9 5 9 9 Mark TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE Sensitivity to Value of Payoff 1 $800 $700 $600 Certain Equivalent $500 $400 $300 $200 $100 $0 $40 $120 $200 $280 $360 $440 $520 $600 $680 $760 $840 $920 $1,000 $0 $80 $160 $240 $320 $400 $480 $560 $640 $720 $800 $880 $960 Payoff 1 Deal A Deal B Deal C Best Sensitivity to Proba of Drawing Red $800 $700 $600 Certain Equivalent $500 $400 $300 $200 $100 Deal A Deal B $0 Deal C 0.03 0.09 0.15 0.21 0.27 0.33 0.39 0.45 0.51 0.57...
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This note was uploaded on 06/16/2010 for the course MS&E 252 taught by Professor Howard during the Fall '08 term at Stanford.

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