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Assume That You Need to Choose Between Two Alternatives and Know

Question 89

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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. Assume that you need to choose between two alternatives and know that the expected value for A<sub>1</sub> 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 S<sub>1</sub> occurring.In conducting sensitivity analysis on the probability of S<sub>1</sub>,the probability value that you would find is p = 0.5. You want to determine how sensitive the choice between the two alternatives is to the probability of S1 occurring.In conducting sensitivity analysis on the probability of S1,the probability value that you would find is p = 0.5.

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