A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Transcribed Image Text:The following decision table organizes a decision that Gregory Davis needs to make regarding his home tailoring business. He has been providing tailoring services for
over 6 years and it has been very successful. Gregory now needs to decide whether or not to expand his business to accommodate more customers and if he expands,
whether to expand with a small or a medium shop. His decision will be heavily based on whether the demand is high or low for tailoring services. Select the correct
decision tree based on the given decision table.
Alternatives
Small shop
Medium shop
Do not expand
Decision Table
State of Nature
High Demand
1000
1400
0
Low Demand
- 600
- 1500
0
Transcribed Image Text:Hawkes Learning
High Demand
Low Demand
Small shop
Medium
shop
Do not expand
High Demand
Low Demand
Do not expand
Small shop
Medium
shop
2
1
2
2
Small shop
Medium shop
Do not expand
Small shop
Medium shop.
Do not expand
High Demand
Low Demand
High Demand
Low Demand
Small shop
Medium shop
Do not expand
Small shop
Medium shop
Do not expand
High Demand
Low Demand
High Demand
Low Demand
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