14. Pongky Company's managers are attempting to value a piece of land that they own. One potential occurrence is that the old road that borders the land gets paved. Another possibility is that the road does not get paved. A third outcome is that the road might be destroyed and completely replaced by a new road. Based on the following future states of nature, their probabilities, and subsequent values of the land, what is the expected value of the land? Probability 0.5 Future States of Nature (SN) SN 1: Current road gets paved SN 2: Road does not get paved SN 3: Current road destroyed and replaced with new road 0.4 0.1 Estimates of land value under each possible future state of nature: Value if SN 1: P200,000 Value if SN 2: P100,000 Value if SN 3: P550,000 P133,333 b. P195,000 a. P225,000 d. P283,333 с.
14. Pongky Company's managers are attempting to value a piece of land that they own. One potential occurrence is that the old road that borders the land gets paved. Another possibility is that the road does not get paved. A third outcome is that the road might be destroyed and completely replaced by a new road. Based on the following future states of nature, their probabilities, and subsequent values of the land, what is the expected value of the land? Probability 0.5 Future States of Nature (SN) SN 1: Current road gets paved SN 2: Road does not get paved SN 3: Current road destroyed and replaced with new road 0.4 0.1 Estimates of land value under each possible future state of nature: Value if SN 1: P200,000 Value if SN 2: P100,000 Value if SN 3: P550,000 P133,333 b. P195,000 a. P225,000 d. P283,333 с.
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter14: Counting And Probability
Section14.CR: Chapter Review
Problem 9CC: a Suppose that a game gives payouts a1,a2,...,an with probabilities p1,p2,...pn. What is the...
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Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
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