Question: I am struggling with sensitivity analysis. Graduate level assignment. Given the probability of all three economic conditions and using expected monetary values (EMVs), calculate EMVs

I am struggling with sensitivity analysis. Graduate level assignment.

Given the probability of all three economic conditions and using expected monetary values (EMVs), calculate EMVs for each node and answer the questions: (1) What's the EMV for not hiring a business analyst and the EMV for hiring a business analyst? (2) What is your recommendation: to hire or not to hire a business analyst?

Use sensitivity analysis to define the probability range with respect to the survey results which might affect the decision to hire or not to hire a business analyst, draw the sensitivity chart, and find the probability for their cross point.

Alternatives Optimistic Conditions Realistic Conditions Pessimistic Conditions Apartment Building 490000 390000 -240000 Office Building 350000 230000 -190000 Warehouse 250000 160000 -100000 Probability 0.36 0.52 0.12 Fee for Survey 12000 Probability of survey results positive 0.5 Probability of survey results negative 0.5 If the analysis report results positive Optimistic Conditions Realistic Conditions Pessimistic Conditions probability 0.68 0.21 0.11 If the analysis report results negative Optimistic Conditions Realistic Conditions Pessimistic Conditions probability 0.23 0.27 0.5

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