Question: 3 . 3 7 The physicians in Problem 3 - 3 6 have been approached by a market research firm that offers to perform a
The physicians in Problem have been approached by a market research firm that offers to perform a study of the market at a fee of $ 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 Unfavorable market given a favorable study Favorable market given an unfavorable study Unfavorable market given an unfavorable study Favorable research study Unfavorable research study 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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