QI1. (5 points) The operations manager for SSM Bus Company wants to decide whether she should...

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QI1. (5 points) The operations manager for SSM Bus Company wants to decide whether she should purchase a small, medium, or large new bus for her company. She estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, moderate, or high, as follows. Demand Bus Low Medium High Small 50 60 70 Medium 40 80 90 120 Large Prior Probability 20 50 0.3 0.3 0.4 Required What is her expected value of perfect information? Show calculation for any credit. QI1. (5 points) The operations manager for SSM Bus Company wants to decide whether she should purchase a small, medium, or large new bus for her company. She estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, moderate, or high, as follows. Demand Bus Low Medium High Small 50 60 70 Medium 40 80 90 120 Large Prior Probability 20 50 0.3 0.3 0.4 Required What is her expected value of perfect information? Show calculation for any credit.

Answer rating: 100% (QA)

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