In the SciTools example, use a two-way data table to see how (or whether) the optimal decision changes as the bid cost and the company’s production cost change simultaneously. Let the bid cost vary from $2000 to $8000 in increments of $1000, and let the production cost vary from $90,000 to $105,000 in increments of $2500. Explain your results.
Answer to relevant QuestionsIn the SciTools example, the probabilities for the low bid of competitors, given that there is at least one competing bid, are currently 0.2, 0.4, 0.3, and 0.1. Let the second of these be p, and let the others sum to 1 - p ...In the SciTools example, you might argue that there is a continuum of possible low competitor bids (given that there is at least one competing bid), not just four possibilities. In fact, assume the low competitor bid in this ...For each of the following, use a one-way data table to see how the posterior probability of being a drug user, given a positive test, varies as the indicated input varies. Write a brief explanation of your results. a. Let ...Explain in general why EVSI is the same, regardless of the actual cost of the information. For example, in the Acme problem EVSI is the same regardless of whether the actual cost of the test market is $100,000, $200,000, or ...In the risky venture example, suppose there is no riskless alternative; the only two possible decisions are the less risky venture and the more risky venture. Explore which of these is the preferred alternative for a range ...
Post your question