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4. Using the following table, calculate the Expected Monetary Value (EMV), Expected Opportunity Loss (EOL), and Expected Value of Perfect Information (EVPI). Use the .50 for the probability of a Good Economy and .50 for the probability of a Poor Economy.   Show your selections (highlight your best alternative). Show the work on an excel file.   STATE OF NATURE DECISION ALTERNATIVE GOOD ECONOMY POOR ECONOMY Sotck market 80,000 -20,000 Bonds 30,000 20,000 CDs 23,000 23,000

4. Using the following table, calculate the Expected Monetary Value (EMV), Expected Opportunity Loss (EOL), and Expected Value of Perfect Information (EVPI). Use the .50 for the probability of a Good Economy and .50 for the probability of a Poor Economy.   Show your selections (highlight your best alternative). Show the work on an excel file.   STATE OF NATURE DECISION ALTERNATIVE GOOD ECONOMY POOR ECONOMY Sotck market 80,000 -20,000 Bonds 30,000 20,000 CDs 23,000 23,000

Practical Management Science
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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4. Using the following table, calculate the Expected Monetary Value (EMV), Expected Opportunity Loss (EOL), and Expected Value of Perfect Information (EVPI). Use the .50 for the probability of a Good Economy and .50 for the probability of a Poor Economy.   Show your selections (highlight your best alternative). Show the work on an excel file.

 

STATE OF NATURE

DECISION ALTERNATIVE

GOOD ECONOMY

POOR ECONOMY

Sotck market

80,000

-20,000

Bonds

30,000

20,000

CDs

23,000

23,000

 

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