Question $6$

Answer the following questions using the information provided below and tha decision tree.

a$)$ What is the expected walue of the cprime decision without sample information?

$

For the following questions do not $10$udP$(P)$ and $P(U).$ However, use posterior probabilities rounded to $3$ decimal places in youn calculations.

b$)$ If sample information is favourable $($F$),$ what is the expected value of the optimal decision?

s

c$)$ If sample information is unfavourable $(U),$ what is the expected value of the optimal decition?

d$)$ What is the expected value with sample information. EV withSI?

E$)$Calculate AVSN $?$

f$)$ Based on your EV SI$,$ should you pay $$110$ for the sample information?

no

Yes