Question: Rob Johnson (see Problem 8-34) has some revised information concerning the accuracy of the pilot plant probabilities. According to his new information, the probability that

Rob Johnson (see Problem 8-34) has some revised information concerning the accuracy of the pilot plant probabilities. According to his new information, the probability that the pilot plant will be successful, given that the full-scale facility will work, is 0.8. The probability that the pilot plant will fail, given that the full-scale facility will fail, is 0.85. Calculate the posterior probabilities and reevaluate the decision tree from Problem 8-34. Does this new information affect Diamond Chemical’s original decision?

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