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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. 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.Conduct sensitivity analysis on the probability of S<sub>1</sub>.What is the value for p that you find? A) p = 0.5 B) p = 0 C) p = 0.2 D) p = 0.8 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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