(A) Construct a decision tree to help the company make its decision. Make sure to label all decision and chance nodes and include appropriate costs, payoffs and probabilities.
(B) What is the best lease option? Why?
(C) Suppose the company could hire an experienced mechanic to inspect the old grader to determine the repair cost before the company makes its final decision. If the mechanic is always correct in his assessments, what is the most the company would pay for the inspection?
Q. 2Suppose a car dealer collects the following information about a sample of 448 residents in the city of ABC:
Exact salaries of these ABC residents
Education level (completed high school only or completed college)
Income level (low or high)
Car finance (whether or not the last purchased car was financed)
Using the education level, income level, and car finance data, the car dealer creates the three pivot tables shown below. Based on these tables, determine how education and income influence the likelihood that a family finances a car.
Q. 3A recent survey collected data from 1000 randomly selected Internet users. The characteristics of the users include their gender, age, education, marital status, and annual income. Using Excel
, the following pivot tables are produced.
Approximate the percentage of these internet users who are women in the 30-43 age group.
Q. 4A recent survey collected data from 1000 randomly selected Internet users. The characteristics of the users include their gender, age, education, marital status, and annual income. Using Excel
, the following pivot tables are produced.
What percentage of these internet users has formal education beyond high school?
Q. 5A recent survey collected data from 1000 randomly selected Internet users. The characteristics of the users include their gender, age, education, marital status, and annual income. Using Excel
, the following pivot tables are produced.
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