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You are given an Expert System with the following rules: R1: IF interest rates fall, THEN bond prices will increase. R2: IF interest rates increase,

You are given an Expert System with the following rules:

R1: IF interest rates fall, THEN bond prices will increase.

R2: IF interest rates increase, THEN bond prices will decline.

R3: IF interest rates are unchanged, THEN bond prices will remain unchanged.

R4: IF the dollar rises (against other currencies), THEN interest rates will decline.

R5: IF the dollar falls, THEN interest rates will increase.

R6: IF bond prices decline, THEN buy bonds.

a. A client has just observed that the dollar exchange rate is falling. He wants to know whether to buy bonds. Run forward chaining and backward chaining, and submit a report of your findings to him.

b. Prepare an inference tree for the backward chaining you did.

c. A second client has observed that interest rates are unchanged. She asks for advice on investing in bonds. What will the ES tell her? Use forward chaining to figure it out.

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