Alternatives 1 and 2 in the Following Payoff Table Represent

question 85

Short Answer

Alternatives 1 and 2 in the following payoff table represent the two possible manufacturing strategies that the EKA manufacturing company can adopt. The level of demand affects the success of both strategies. The states of nature (S_I) represent the levels of demand for the company products. s₁, s₂, and s₃ characterize high, medium, and low demand, respectively. The payoff values are in thousands of dollars.
The management believes that weather conditions significantly affect the level of demand. 48 monthly sales reports are randomly selected. These monthly sales reports show 15 months with high demand, 28 months with medium demand, and 5 months with low demand. 12 of the 15 months with high demand had favorable weather conditions. 14 of the 28 months with medium demand had favorable weather conditions. Only 1 of the 5 months with low demand had favorable weather conditions.
What is the probability that weather conditions are poor, given that the demand is high? What is the probability that weather conditions are poor, given that the demand is medium? What is the probability that weather conditions are poor, given that the demand is low?

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Definitions:

Human Infant

A very young child or baby in the earliest stage of life, particularly from birth to one year.

Loud Noise

A disruptive or disturbing sound of high intensity, often causing potential harm to hearing or inducing stress.

Conditioned Stimulus

A neutral stimulus that, upon being associated with an unconditioned stimulus, starts to induce a conditioned response.

Punishment

The imposition of a penalty or discomfort by an authority figure or system in response to an undesired behavior, aiming to decrease its occurrence.