By the end of this chapter, you will be able to:
• Identify whether a particular cost is deterministic or probabilistic.
• Perform a cost-benefit analysis including both deterministic and probabilistic costs.
• Calculate an Expected Monetary Value (EMV) for two or more states of nature.
• Prepare and interpret a decision tree analysis.
• Perform a sensitivity analysis.
Estimated timing for this chapter:
|Exercises||2 hours 40 minutes|
|Review Questions||15 minutes|
|Total Time||3 hours 25 minutes|
Quantitative risk analysis tools, ...