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the physicians in problem 3-36 have been ap-proached by a market research firm that offers to...

the physicians in problem 3-36 have been ap-proached by a market research firm that offers to perform a study of the market at a fee of $5,000. the market researchers claim their experience enables them to use bayes' theorem to make the following statements of probability: probability of a favorable market given a favorable study = 0.82 probability of an unfavorable market given a favorable study = 0.18 probability of a favorable market given an unfavorable study = 0.11 probability of an unfavorable market given an unfavorable study = 0.89 probability of a favorable research study = 0.55 probability of an unfavorable research study = 0.45 (a) develop a new decision tree for the medical pro-fessionals to reflect the options now open with the market study. (b) use the emv approach to recommend a strategy. (c) what is the expected value of sample informa-tion? how much might the physicians be willing to pay for a market study? (d) calculate the efficiency of this sample

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Colby Messinger answered 1 year ago
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