Mathematics, 04.01.2021 19:40 deadpoolcorvettehats
Embassy Publishing Company received a six-chapter manuscript for a new college textbook. The editor of the college division is familiar with the manuscript and estimated a 0.65 probability that the textbook will be successful. If successful, a profit of $750,000 will be realized. If the company decides to publish the textbook and it is unsuccessful, a loss of $250,000 will occur. Before making the decision to accept or reject the manuscript, the editor is considering sending the manuscript out for review. A review process provides either a favorable(F) or unfavorable (U) evaluation of the manuscript. Past experience with the review process suggests probabilities P(F) = 0.7 and P(U) = 0.3 apply. Let s1 = the textbook is successful, and s2= the textbook is unsuccessful. The editor’s initial probabilities of s1and s2
s1 will be revised based on whether the review is favorable or unfavorable. The revised probabilities are as follows.
P(s1|F)=0.75P(s1|U)=0.417 P(s2|F)=0.25P(s2|U)=0.583
a. Construct a decision tree assuming that the company will first make the decision of whether to send the manuscript out for review and then make the decision to accept or reject the manuscript.
b. Analyze the decision tree to determine the optimal decision strategy for the publishing company.
c. If the manuscript review costs $5000, what is your recommendation?
d. What is the expected value of perfect information? What does this EVPI suggest for the company?
Answers: 2
Mathematics, 21.06.2019 15:00
The triangles are similar. what is the value of x? show your work.
Answers: 2
Mathematics, 21.06.2019 19:20
Ab and bc form a right angle at point b. if a= (-3,-1) and b= (4,4) what is the equation of bc?
Answers: 1
Mathematics, 21.06.2019 19:30
Hey am have account in but wished to create an account here you guys will me with my make new friends of uk !
Answers: 1
Mathematics, 21.06.2019 21:00
Hurrya vegetable garden and a surrounding path are shaped like a square that together are 11ft wide. the path is 2ft wide if one bag of gravel covers 9 square feet how many bags are needed to cover the path
Answers: 1
Embassy Publishing Company received a six-chapter manuscript for a new college textbook. The editor...
Biology, 16.07.2019 08:30
English, 16.07.2019 08:30
Mathematics, 16.07.2019 08:30
History, 16.07.2019 08:30
Mathematics, 16.07.2019 08:30
Mathematics, 16.07.2019 08:30
History, 16.07.2019 08:30
Biology, 16.07.2019 08:30
Mathematics, 16.07.2019 08:30
Mathematics, 16.07.2019 08:30