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Scenario input table economics evaluation - Assignment Example

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Relatively high values of Pr PROB have been used as the input values for the Best case scenario because they are the largest values of the…
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Scenario input table economics evaluation
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Scenario input table economics evaluation

Download file to see previous pages... The best values of Pr SIDE are those of people who are least affected by PEP. The side effects are disastrous and therefore the least values of the side effects are the best values for this case scenario. (Aaker, 2001)
Base and worst case scenario analysis involves the analysis of either the most positive or most negative outcome of a decision or action. Both positive and negative outcomes are evaluated in this analysis. These scenarios are considered in relation to the Base value. The base value is therefore the initial value or the average value of the case scenario or case. The best and worst case scenario analysis allow the parties involved to make better decisions about the case under study. (Aaker, 2001)
The table of results shows that the best case has a higher cost than that of the worst case. Under the best curve, the cost of No-PEP was higher than that of when PEP was administered. The cost of No-PEP in the worst scenario was lower than the cost of PEP administration. These values indicate that for the best scenario to occur, the policy maker must spend a comparatively higher amount of funds than that of worst case scenario. (Aaker, ...Download file to see next pagesRead More
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