Alternatives 1 and 2 in the Following Payoff Table Represent

question 45

Multiple Choice

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,with probabilities of .3,.6,and .1,respectively.The payoff values are in thousands of dollars. $\begin{array}{lccc} &&\underline{{\text { States of nature }}} \\& s_{1} & s_{2} & s_{3} \\\text { Alternative (strategy) } 1 & 110 & 80 & 70 \\\text { Alternative (strategy) } 2 & 60 & 120 & 50\end{array}$


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?

• A).2
• B).5
• C).8
• D).25
• E).75

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Definitions:

Lewis Structure

A diagrammatic method for representing the electron configuration in molecules, showing how valence electrons are arranged among atoms in a molecule.

Double Bonds

Double bonds are chemical bonds between two chemical elements involving four bonding electrons as opposed to two in a single bond.

Compound

A substance formed from two or more elements chemically united in fixed proportions.

Chloromethane

A colorless, flammable gas with a slight sweet odor, used in the production of silicones and butyl rubber.