Question: Reconsider the original version of the Silicon Dynamics problem described

Reconsider the original version of the Silicon Dynamics problem described in Prob.16.2-2.
(a) Assuming the prior probabilities of the two levels of sales are both 0.5, use ASPE to construct and solve the decision tree for this problem. According to this analysis, which decision alternative should be chosen?
(b) Perform sensitivity analysis systematically by generating a data table that shows the optimal decision alternative and the expected payoff (when using Bayes’ decision rule) when the prior probability of selling 10,000 computers is 0, 0.1, 0.2, ..., 1.

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  • CreatedSeptember 22, 2015
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