Business, 17.08.2019 22:10 kenldykido2300

Chris suit is administrator for lowell hospital. she is trying to determine whether to build a large wing on the existing hospital, a small wing, or no wing at all. if the population of lowell continues to grow, a large wing could return $150,000 to the hospital each year. if a small wing were built, it would return $100,000 to the hospital each year if the population continues to grow. if the population of lowell remains the same, the hospital would encounter a loss of $85,000 with a large wing and a loss of $45,000 with a small wing. unfortunately, suit does not have any information about the future population of lowell. a. assuming that each state of nature has the same likelihood, determine the best alternative. , what is the emv? b. if the likelihood of growth is .4 and that of remaining the same is .6 and the decision criterion is expected monetary value, which decision should suit make? , what is the emv?

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Chris suit is administrator for lowell hospital. she is trying to determine whether to build a large...

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