{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# This is represented by event nodes with two branches

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: roceed and what the expected annual profit would be (ignoring the cost of the survey). First we must determine an estimate for the probability that the survey will indicate a positive attitude or negative attitude toward the design. Second, given the survey indicates either a positive or negative attitude, we must determine the posterior probability that sales will be either strong or moderate. Both of these calculations can be performed using the template for posterior probabilities on the CD. These results are shown below. Thus, there is a 50% chance that the survey will indicate a positive attitude and a 50% chance that the survey will indicate a negative attitude toward the new car. Given a positive attitude, the probability of strong sales increases to 84%. Given a negative attitude, the...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern