Alternatives 1 and 2 in the Following Payoff Table Represent

question 60

Essay

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.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:

Word Root

The fundamental part of a word that contains its primary meaning, to which prefixes and suffixes can be attached to create new words.

Prefix

A letter or group of letters added to the beginning of a word to alter its meaning or create a new word.

Suffix

An affix that is added to the end of a word to alter its meaning or create a new word.

Combining Forms

In medical terminology, the word root with a combining form vowel (usually an “o”) that aids in making the word pronounceable, particularly when adding a suffix that begins with a consonant.