Exhibit 14.11 The Following Questions Use the Information Below

question 1

Short Answer

Exhibit 14.11
The following questions use the information below.
A company is planning a plant expansion. They can build a large or small plant. The payoffs for the plant depend on the level of consumer demand for the company's products. The company believes that there is an 72% chance that demand for their products will be high and a 28% chance that it will be low. The company can pay a market research firm to survey consumer attitudes towards the company's products. There is a 76% chance that the customers will like the products and a 24% chance that they won't. The payoff matrix and costs of the two plants are listed below. The company believes that if the survey is favorable there is an 87% chance that demand will be high for the products. If the survey is unfavorable there is only a 25% chance that the demand will be high. The company has developed the following conditional probability table for their decision problem.
-Refer to Exhibit 14.11. What formula should go in cell C13 of the probability table?

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Definitions:

Stenography

The practice of writing in shorthand or using a stenotype machine to transcribe spoken words at a rapid pace.

Expertise

Specialized knowledge or skill in a particular field acquired through training, study, or experience.

Job-related

Pertaining to aspects directly connected with one's profession, duties, or work environment.

Applicant

A person who applies for a job, program, or position.