Business
Engineering
Math
Science
Social Science
Using the finished version of the file for Example 9.4, use a data table to perform a sensitivity analysis on the risk tolerance. Specifically, let the risk tolerance in cell B12 vary from $10,000 to $100,000 and keep track of two outputs in the data table, the TRUE/FALSE value in cell B14 and the certainty equivalent in cell C15. Interpret the results.
Practical Management Science
Solutions
Practical Management Science
Using the finished version of the file for Example 9.4, use a data table to perform a sensitivity analysis on the risk tolerance. Specifically, let the risk tolerance in cell B12 vary from $10,000 to $100,000 and keep track of two outputs in the data table, the TRUE/FALSE value in cell B14 and the certainty equivalent in cell C15. Interpret the results.
To perform: A sensitivity analysis on the risk tolerance.
Introduction: Simulation model is the digital prototype of the physical model that helps to forecast the performance of the system or model in the real world.
Explanation of Solution
Formulae to determine the above table:
Decision tree developed by precision tree software:
Decision tree should be developed using precision tree software.
Place the cursor at any blank cell and click decision tree under precision tree icon. The following window will appear:
Press ok and the below image (Model image) will appear:
Chapter 9 Solutions
Additional Business Textbook Solutions
Purchasing and Supply Chain Management
Accounting Information Systems
Contemporary Marketing
Essentials of Business Communication (MindTap Course List)
Corporate Financial Accounting
Fundamentals of Financial Management (MindTap Course List)
Macroeconomics
Principles of Economics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Corporate Financial Accounting
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Exploring Economics
Financial Accounting
Financial Accounting
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Financial & Managerial Accounting
Cornerstones of Cost Management (Cornerstones Series)
Accounting Information Systems
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Intermediate Accounting: Reporting And Analysis
Principles of Macroeconomics (MindTap Course List)
Foundations of Business (MindTap Course List)
College Accounting, Chapters 1-27
Essentials of Economics (MindTap Course List)
Economics (MindTap Course List)
Management, Loose-Leaf Version
Principles of Macroeconomics (MindTap Course List)
Accounting (Text Only)
Fundamentals of Financial Management (MindTap Course List)
Economics For Today
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
MKTG 12:STUDENT ED.-TEXT
Financial And Managerial Accounting
Pkg Acc Infor Systems MS VISIO CD
College Accounting (Book Only): A Career Approach
Principles of Microeconomics (MindTap Course List)
Managerial Accounting: The Cornerstone of Business Decision-Making
Statistics for Business & Economics, Revised (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
MACROECONOMICS FOR TODAY
Microeconomics
Economics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
Micro Economics For Today
Cornerstones of Financial Accounting
Macroeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
