Use the following Profit decision tree and calculate the EVPI. **Enter the number only. Do not enter any symbol or text** d F d. Market Research 1 No Market Research P(S1)=0.7 P(12) -0.3 Answer: P(F) = 0.8 P(U)= 0.2 U P(S1/F) = 0.85 P(s2|F) = 0.15 d₁ d₂ d₁ d₂ P(s1|U) = 0.55 P(s2|U)= 0.45 5₂ 5₁ 5₂ 2 5₂ 5₁ 5₂ 5₂ 100 300 400 200 100 300 400 200 100 300 400 200

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
2
Use the following Profit decision tree and calculate the EVPI.
**Enter the number only. Do not enter any symbol or text**
d
3
Market
Research
No Market
Research
P(S1) = 0.7
P(S2) =0.3
Answer:
page
P(F) = 0.8
P(U) = 0.2
fx.
F
U
P(s1|F) = 0.85
P(s2|F) = 0.15
d₂
d₁
d₂
d₁
d₂
P(s1|U) = 0.55
P(s2|U) = 0.45
5₂
5₂
5₂
5₁
5₂
5₁
100
300
- 400
- 200
100
300
400
- 200
100
300
- 400
200
Transcribed Image Text:Use the following Profit decision tree and calculate the EVPI. **Enter the number only. Do not enter any symbol or text** d 3 Market Research No Market Research P(S1) = 0.7 P(S2) =0.3 Answer: page P(F) = 0.8 P(U) = 0.2 fx. F U P(s1|F) = 0.85 P(s2|F) = 0.15 d₂ d₁ d₂ d₁ d₂ P(s1|U) = 0.55 P(s2|U) = 0.45 5₂ 5₂ 5₂ 5₁ 5₂ 5₁ 100 300 - 400 - 200 100 300 400 - 200 100 300 - 400 200
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