For the Acme problem, perform the following sensitivity analyses on the three prior probabilities and comment on

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For the Acme problem, perform the following sensitivity analyses on the three prior probabilities and comment on the results.

a. Vary the probability of great in a one-way sensitivity analysis from 0 to 0.6 in increments of 0.1. Do this in such a way that the probabilities of the two other outcomes, fair and awful, stay in the same ratio as they are currently, 7 to 4.

b. Vary the probabilities of great and fair independently in a two-way sensitivity analysis. You can choose the ranges over which these vary, but you must ensure that the three prior probabilities continue to be nonnegative and sum to

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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