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What Are Real Options and How Do They Affect the Estimated

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What are real options and how do they affect the estimated value of projects?


Definitions:

Objective Function

A mathematical function representing goals of optimization, which is either maximized or minimized in decision-making processes.

Emergency Rooms

Hospital departments that provide immediate treatment to patients with acute illnesses or injuries, operating on a 24/7 basis.

Integer Optimization Models

Mathematical models used in operations research where the decision variables are constrained to be integers, often used in planning and allocation problems.

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