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Suppose that before making a final decision, McHuffter is considering conducting a survey to help evaluate the demand for the new condominium development. The survey report is anticipated to indicate one of two levels of demand: weak(W) or strong(S). The relevant probabilities are as follows: (25 pts) P(W)= 0.3 P(low/W) = 0.50 P(low/S) = 0.10 P(S)= 0.7 P(medium/W)= 0.40 P(medium/S)= 0.25 P(high/W) = 0.10 P(high/S) = 0.65 BDSC 340.001-3 d) Construct a decision tree for this problem and analyze it. e) What is McHuffter’s optimal decision? f) What is the expected value of the survey(sample) information?
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