17 Refer to Exercise 16. The management of Zingtronics is planning to hire Dr. Lalith deSilva, an economist and head of a local consulting firm, to prepare an economic forecast for the computer industry.The reliability of her forecasts based on previous assignments is provided by the following table of conditional probabilities.

Future demand Economic forecast Low Average High Optimistic 0.1 0.1 0.5 Normal 0.3 0.7 0.4 Pessimistic 0.6 0.2 0.1 1.0 1.0 1.0

a. Select the best action for Zingtronics if Dr. deSilva submits a pessimistic forecast for the computer industry.

b. Prepare a decision tree diagram for the problem with the use of Dr. deSilva’s forecasts.

c. What is the Bayes strategy for this problem?

d. Determine the maximum fee that should be paid for the use of Dr. deSilva’s services.

a. Select the best action for Zingtronics if Dr. deSilva submits a pessimistic forecast for the computer industry.

b. Prepare a decision tree diagram for the problem with the use of Dr. deSilva’s forecasts.

c. What is the Bayes strategy for this problem?

d. Determine the maximum fee that should be paid for the use of Dr. deSilva’s services.