Business, 25.03.2021 16:40 aliyahaliyah54
ECISION TREE ANALYSIS FOR EXPECTED VALUE OF INFORMATIONA major use of decision tree analysis is to estimate the expected value of information. We will use the following simple example to illustrate the application process. A CEO needs to decide whether to invest $5 million to improve an existing product, which is sure to yield a profit of $7 million, or to develop a new product, which will yield a profit of $15 million if successful or $0 if not successful. A consultant offers to conduct a market forecast for the new product for a fee of $0.5 million. Should the CEO hire the consultant and in which product should the CEO invest
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ECISION TREE ANALYSIS FOR EXPECTED VALUE OF INFORMATIONA major use of decision tree analysis is to e...
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