Assume That You Need to Choose Between Two Alternatives and Know

question 101

Multiple Choice

Assume that you need to choose between two alternatives and know that the expected value for A₁ is 400,as shown in the decision tree below. You want to determine how sensitive the choice between the two alternatives is to the probability of S₁ occurring.Conduct sensitivity analysis on the probability of S₁.What is the value for p that you find?

• A)p = 0.5
• B)p = 0
• C)p = 0.2
• D)p = 0.8

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Definitions:

Wattmeter

A meter used to measure true power or watts.

True Power

Generally expressed as watts. Describes the amount of electrical energy converted into some other form.

Ohmmeter

An instrument for measuring electrical resistance in ohms.

Analog Meter

A device that measures and displays information using a moving pointer or dial rather than digital means.