The Alternatives 1 and 2 in the Following Payoff Table

question 7

Essay

The 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 the weather conditions significantly affect the level of demand.48 monthly sales reports are randomly selected.These monthly sales reports showed 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.
Construct the revised probability table for favorable weather conditions and find the probability of high demand given that the weather conditions are favorable.

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Definitions:

Schizophrenic

Refers to an individual diagnosed with schizophrenia, a mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Neurotransmitter Levels

The concentrations of chemicals in the brain that transmit signals across synapses between neurons, influencing mood, thought, and behavior.

First-generation Antipsychotic

A class of drugs used to treat psychiatric conditions, particularly schizophrenia, characterized by their dopamine receptor antagonism.

Second-generation Antipsychotic

A class of drugs used to treat psychiatric conditions, generally considered to have fewer side effects than first-generation antipsychotics.