Question: The correct answer is 12.49, but I would like help as to how I can get that answer! Question 1 (3 points) Given below are

The correct answer is 12.49, but I would like help as to how I can get that answer!

Question 1 (3 points) Given below are the payoffs for a wood manufacturer which are dependent on whether or not they build a new wood pellet plant and whether or not there is high demand or low demand for the pellets in the upcoming year. Payoffs (in $ millions) Build new plant? Demand Yes No High $13.50 $8.65 Low -$53.60 $1.63 The wood manufacturer has hired a forecaster. If the forecaster forecasts high demand, he is correct 98.5% of the time. If the forecaster forecasts low demand, he is correct 41.6% of the time. What will be the EMV if the forecaster forecasts high demand? Note: there is no need to use Bayes' rule for this question - assume it has already been used to calculate the above probabilities. Round your answer to 2 decimal place if needed. Your Answer:

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