=A

e. Use TreePlan to construct and solve a decision tree for this problem.

A

f. Expanding the spreadsheet containing this decision tree as needed, perform sensitivity analysis with the decision tree by re-solving when the prior probability of S1 is 0.2 and again when it is 0.6.

A g. Now perform this sensitivity analysis systematically by generating a data table that shows the best alternative (according to Bayes’ decision rule) and the resulting expected payoff as the prior probability of S1 increases in increments of 0.04 from 0.2 to 0.6.