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:

Schema-Inconsistent Behaviors

Actions or behaviors that do not align with the existing schemas or frameworks one has about people, objects or events.

Misinformation Effect

The process by which cues that are given after an event can plant false information into memory.

Activated Memory

Memory that is readily accessible and can be easily recalled due to recent activation or relevance to the current context.

Schema-Consistency

The tendency to process and integrate information that is in alignment with existing cognitive frameworks or schemas.