Question: Problem 6-18 w_PrecisionTree (Multistage Decision Problems) 1. 2. 3. 4. Question Workspace Check My Work(2 remaining) Starting with the finished version of the file forFigure

Problem 6-18 w_PrecisionTree (Multistage Decision Problems)

Question Workspace

Check My Work(2 remaining)

Starting with the finished version of the file forFigure 6.21for Acme, change the probabilities in cells B9 for P(good), the prior probability of a good market outcome (make it smaller in 0.05 increments), B14 for P(good | good), the conditional probability of having a good prediction, given a good market outcome (make it larger in 0.05 increments), and B15 for P(good | bad), the conditional probability of having a good prediction, given a bad market outcome (make it smaller in 0.05 increments.) For each combination calculate the EMV and decide whether Acme should hire the marketing research firm. Round your answers (in $1,000s) to one decimal place, if necessary.

	P(good)	P(good \| good)	P(good \| bad)	Hire firm?	EMV
1	0.40	0.80	0.30	SelectNoYesItem 1
2	0.35	0.85	0.25	SelectNoYesItem 3
3	0.30	0.90	0.20	SelectNoYesItem 5
4	0.25	0.95	0.15	SelectNoYesItem 7

Question: Problem 6-18 w_PrecisionTree (Multistage Decision Problems) 1. 2. 3. 4. Question Workspace Check My Work(2 remaining) Starting with the finished version of the file forFigure

Step by Step Solution

Students Have Also Explored These Related Mathematics Questions!