If you have any questions about the Week 1 HW, keep in mind I can't answer specifics about it until after it's graded. But! I am more than happy to answer all other questions, either about the class example or practice problem set.
I'm attaching the two questions I've received so far as anonymous comments; if there are any other Qs about the practice problems, class example, please comment directly on the site.
^_^
Saturday, February 14, 2009
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Hi Ronjon,
ReplyDeleteHope you're well. I just have a quick question about the solution to Q1 in the Practice Qs.
In the decision tree branch for shutting down the plant after building it, it suggests that the payoff is 0.7 - 0.9 = -0.2... I assume the
0.7 is the profit that can be derived from selling the land? But the question stipulates that the land cannot be sold once the plant has been built, so if they decide to build the plant & then shut it down they wouldn't be able to obtain anything for the land anyway, so wouldn't the payoff for that decision just be -0.9 (being the cost to
build the plant)?
Hope my ramblings make sense, thanks for your help.
Hello Anonymous :)
ReplyDeleteYou're right, the last payoff of problem one of the practice problems should read -0.9 (instead of -0.2) for the reasons you stated above.
Appreciate the assist ;)
^_^
This is about the man ec hw (Zoro). As you'll see there are no P&d costs for project 2 or 3 while they exist for project 1. It seems that it's comparing apples and oranges when one has this info and the others do not.?
ReplyDeleteAlso...take #1 for example to come up with the final amount on the decision tree would it be (-100 M (project costs) + 200 M (input from Zoro) +18,000 (potential return on Inv)) * .01 (probability of it being a success) is that what gives you the final number. I guess what I'm struggling with is what the multiple/how to use the percentage possibility for success.
Thanks, mate!
Hey stranger,
ReplyDeleteI can't actually answer specific questions about the homework (it's graded)
BUT
I can refer you to 'Chang's dilemma' (in-class example), as well as Question 4 in the practice problems, which deals with the same idea of calculating expected values with other costs involved. Chang's dilemma is a good walkthrough of what you're asking about. Take a look at it, and if you want to ask questions about THAT, I can answer those... :)
The only other advice is not to beat yourself up too much; the hw is graded, but the percentage weighting is minimal.
Hope that helped...
^_^
For clarification purposes, project #3 (ZORO+) has no associated p&d costs. If it's not listed, either assume it's nonexistent or included in the given profit figures.
ReplyDeleteHi there,
ReplyDeleteJust wondering if anyone else experiences the same issue or if it was my data entry skills...
I just finished & submitted the problem set for week 1. For Q11 & Q12 I calculated the right answer. I'm pretty certain I entered the correct response in the web interface (I did double check but my eyes could be getting blurry!), but the auto-marking suggested my response was wrong...
PS: I do know it is a fraction of a minuscule amount of marks, but just want to check.
Hello,
ReplyDeleteThe answers (without solutions) are posted, please verify and let me know immediately if there's an error -- there's probably some way to go into the application to verify the answers, but I don't yet know what it is. Can't be that hard to figure out, though...