In Problem 15-13, suppose that AFC management has decided to test-market its Wings ’N Things in selective locations. The outcome of the test is either “good” (a1) or

“bad” (a2). The test yields the following conditional probabilities with and without the advertising campaign:

The symbols v 1 and v 2 represent “success” and “no success,” and w 1 and w 2 represent “receptive” and “not receptive.”

(a) Develop the associated decision tree.

(b) Determine the best course of action for AFC.

Transcribed Image Text:

P{a} With campaign P{aw No campaign a1 02 a1 a2 .95 .05 201 .8 .2 V1 12 3 7 102 .4 .6