Top Posters
Since Sunday
18
11
Z
9
7
s
6
m
6
M
6
a
6
K
6
l
5
k
5
5

# Note: This problem requires the calculation of posterior probabilities. Dawson's is a fruit and ...

wrote...
Posts: 107
Rep: 0 0
2 weeks ago
Note: This problem requires the calculation of posterior probabilities. Dawson's is a fruit and vegetable stand in southern New Jersey that is considering an expansion of the facility to take advantage of increased future demand.  The future demand for the business will be strong or weak with a 50/50 chance of each. The following decision table summarizes Dawson's options and the associated payoffs.

Dawson's has the option to hire a market research firm to conduct a survey to better ascertain the demand for their business. The cost of the survey is \$5,000. If the market has strong demand for the business, the probability that the survey will predict a strong demand is 76%. If the market has a weak demand for the product, the probability that the survey will predict a strong demand is 32%.
A) Construct a decision tree to determine Dawson's course of action.
B) What is the most that Dawson's should pay for the survey?
Textbook

Edition: 2nd
Author:
Replies
Answer verified by a subject expert
squallysqually
wrote...
Posts: 73
Rep: 1 0
2 weeks ago

### Related Topics

wrote...
Posts: 107
Credits: 30

2 weeks ago
 This calls for a celebration
wrote...
Posts: 119
Credits: 175

Yesterday
 Thank you, thank you, thank you!
wrote...
Posts: 141
Credits: 175

2 hours ago
 Helped a lot
Explore
96 People Browsing
298 Signed Up Today
What percentage of nature vs. nurture dictates human intelligence?

Previous poll results: What's your favorite math subject?
Related Images
2373
137
Latest Blogs