Problem 12.13 - Problem 12.13 Excel Solution Making Hard Decisions with DecisionTools by Robert T Clemen Terence Reilly EVPI = E(Loss|Burner

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Problem 12.13- Excel Solution #ADDIN? #ADDIN? 50 #ADDIN? 50.0% Decision 0 #ADDIN? #ADDIN? #ADDIN? 22.5 #ADDIN? #ADDIN? #ADDIN? 29.5 #ADDIN? #ADDIN? Chance 0 #ADDIN? #ADDIN? #ADDIN? 0 #ADDIN? 50.0% Decision 0 #ADDIN? #ADDIN? #ADDIN? 5 #ADDIN? #ADDIN? #ADDIN? 2 #ADDIN? 50.0% #ADDIN? 50 #ADDIN? #ADDIN? Chance #ADDIN? #ADDIN? 50.0% #ADDIN? 0 #ADDIN? Decision #ADDIN? 50.0% #ADDIN? 22.5 #ADDIN? #ADDIN? Chance #ADDIN? #ADDIN? 50.0% #ADDIN? 5 #ADDIN? 50.0% #ADDIN? 29.5 #ADDIN? #ADDIN? Chance #ADDIN? #ADDIN? 50.0% #ADDIN? 2 #ADDIN? Freeze Freeze No Freeze No Freeze Freeze Freeze No Freeze No Freeze Freeze Freeze No Freeze No Freeze Get information Get information Do nothing Do nothing Set burners Set burners Use sprinklers Use sprinklers Problem 12.13a Problem 12.13a Freeze Freeze No Freeze No Freeze Do nothing Do nothing Burners Burners Sprinklers Sprinklers Do nothing Do nothing Burners Burners Sprinklers Sprinklers EVPI = E(Loss|Burner) - E(Loss|Info) = $13.75K - $11.25K = $2.5K
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50.0%
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This note was uploaded on 12/04/2011 for the course BUSINESS 500 taught by Professor John during the Spring '11 term at Kansas.

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Problem 12.13 - Problem 12.13 Excel Solution Making Hard Decisions with DecisionTools by Robert T Clemen Terence Reilly EVPI = E(Loss|Burner

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