For a fee, the company in problem (5) can have a market research firm conduct a survey of consumer attitudes toward their bagels. Based upon past examination of 100 similar surveys, the conditional probabilities given the two possible demands are presented in the following table:

e.g. P(favorable response | high demand) = 0.84

In the past when demand turned out to be high, the survey had initially returned a favorable response. Similarly,

P(favorable response | low demand) = 0.16

P(unfavorable response | high demand) = 0.16

P(unfavorable response | low demand) = 0.84

Calculations given that the survey results are unfavorable have been computed and are on the decision tree on the next page. You need to compute the results when the survey response is favorable. Place these computations on the tree. Round decimals to 2 places.

What is the maximum fee you are willing to pay the market research firm?

Explain your decision should you take the survey.

Price: $24.95

Solution: The downloadable solution consists of 6 pages, and 265 words
Deliverable: Word Document and pdf