A businessman has two independent investments A and B available to him, but he lacks the capital to undertake both of them simultaneously. he can choose to take A first and then stop, or if A i successfull then take B, or vice versa. The probability of success on A is 0.7 while for B it is 0.4. Both investments require an initial capital outlay of $2000 and both return nothing if the venture is unsuccessful. successful completion of A will return $3000 (over cost), while successful completion of B will return $5000 (overcost).
Prepare a report, with the aid of a decision tree, advising the investor of the best course of action
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment