- This topic has 5 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Sir, please help me to understand the following.In September 2016 exam question 19, section B, how $1648.25 expected value without perfect information has been arrived at?
I listened to your lectures, and I understood the example you give. This exam question seems different or I probably missing something…To get the expected value without perfect information, you need to calculate the expected value for each of the supply levels and pick the highest – the normal expected value decision making approach.
So, for example, at a level of 960, the expected value = (740 x 0.15) + (1290 x 0.30) + (1785 x 0.4) + (2496 x 0.15)
I understand now, thank you.
I did the same but on horizontal line.
Sir, I remember in the exam I spent much time to find out weather we should take into account limitation of 1240 employees. Can you explain please, this is not the same as limitation of 1200 units in your example?
Also, in your example there Decision and Supply axis whereas in this example Demand and Supply. So they are different, aren’t they? I really find it difficult to comprehend the tables. I solved problems in kit and all the time it’s something new. What is the rule I could apply for every such problem?
Thank you.The number of employees is of no relevance in this question.
It does not matter how you set up your table (and the examiner shows it in different ways in different exams deliberately so as to check your understanding).
- The topic ‘Risk and Uncertainty’ is closed to new replies.