Question: 3 . 3 7 The physicians in Problem 3 - 3 6 have been approached by a market research firm that offers to perform a

3.37 The physicians in Problem 3-36 have been approached by a market research firm that offers to perform a study of the market at a fee of $5,000. The market researchers claim their experience enables them to use Bayes Theorem to make the following statements of probability: Condition Probability Favorable market given a favorable study 0.82 Unfavorable market given a favorable study 0.18 Favorable market given an unfavorable study 0.11 Unfavorable market given an unfavorable study 0.89 Favorable research study 0.55 Unfavorable research study 0.45 a. Develop a new decision tree for the medical professionals to reflect the options now open with the market study. b. Use the EMV approach to recommend a strategy. c. What is the expected value of sample information? How much might the physicians be willing to pay for a market study? d. Calculate the efficiency of this sample information

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