A clinic decides to adopt an EHR system. The CIO must decide whether to purchase the entire system or do a pilot project first. If the office implements the entire system, the net benefits are $200,000 (good), $50,000 (mediocre) or -300,000 (bad). The net benefits of the system to the office depends on whether the system works good, mediocre or bad. The probabilities of being good, mediocre or bad are 0.3, 0.6 and 0.1 respectively. In a pilot project, there are two outcomes – the project either goes good, or not good, with the probabilities of 0.6 and 0.4 respectively. After the pilot project, the CIO will move on. If the pilot project works provides good results, he can implement a full scale project. The probability of working good ($100,000 outcome) in the full scale project is 0.7, of partially working ($10,000) is 0.3. If the pilot project does not work well, the CIO will give it up. In a give-up event, the office will lose $200,000. Make a decision whether the office should implement the “entire system” or the “pilot project” using a decision tree. Things to include when you turn in this assignment: 1. Your Excel spreadsheet with your calculations (worth 90 points) 2. Your decision Tree (worth 90 points) 3. Your recommendation (worth 90 points 30 points for grammar I also attached and example decision tree
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The post A clinic decides to adopt an EHR system. The CIO must decide whether to purchase the entire system or do a pilot project first. If the office implements the entire system, the net benefits are $200,000 (good), $50,000 (mediocre) or -300,000 (bad). The net benefits of the system to the office depends on whether the system works good, mediocre or bad. The probabilities of being good, mediocre or bad are 0.3, 0.6 and 0.1 respectively. appeared first on Apax Researchers.
