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Unformatted text preview: let students know that data are sometimes presented in alternative formats. (a) (b) using the maximin criterion; No floor space (N). Problem A.9 A.9 (a) Under conditions of risk, the company should choose batch processing, with an expectation of $1,000,000, which is twice as high as the next best choice. (b) EVPI is $170,000. Problem A.22 A.22 (a) A .25 (b) EMV (X) .45(18) .55(18) 1.8 EMV (Y) .45( 9) .55(15) 4.2 Best EMV (X&Y) .45(9) .55( 3) 2.4 EMV (Nothing) 0 Y is best choice Problem A.23 A.23 The EMV of this game is $0.59, as illustrated in the diagram below: Decision At X At Y At X At Y X 45 27 9 27 18 18 Y 615 3015 9 15 X&Y (45 6)(27 15) (30 9)(27 15) 9 3 Nothing 0 0 0 0 Probability .45 .55 .45 .55...
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 Spring '11
 Scala

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