Be IUI Question 1 (10 points) Peter is worried about his old roof on his house. If the weather is very bad this winter,

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Be Iui Question 1 10 Points Peter Is Worried About His Old Roof On His House If The Weather Is Very Bad This Winter 1 (36.19 KiB) Viewed 25 times

Be IUI Question 1 (10 points) Peter is worried about his old roof on his house. If the weather is very bad this winter, it may start to leak and be more expensive to fix on an emergency basis than if he does something about it before the rainy season begins. His options are to repair the roof, replace the roof, or simply wait to see how the weather is. His estimated costs for each of these alternatives under each of three weather conditions are shown below: Repair Replace Do nothing Severe Weather Normal Weather Mild Weather -11000 -7000 -1000 -8000 -8000 -8000 - 15000 -5000 0 a. Draw a decision tree to represent Jon's decision. b. Explain the recommended decision if Jon is optimistic? C. Explain the recommended decision if Jon is pessimistic? d. What is the recommended decision if the probability of normal weather is 50%, the probability of severe weather is 10%, and the probability of mild weather is 40%? e. Calculate is the Expected Value of Perfect information about the winter weather?