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Please assign to tutor sachinkrakela to answer only! 2. UPS and FedEx are two major international shipping companies in Hong Kong. The strategy team at
Please assign to tutor sachinkrakela to answer only!
2. UPS and FedEx are two major international shipping companies in Hong Kong. The strategy team at UPS is considering raising its price of service next year. However, the company is not sure whether FedEx will keep its price the same or raise it as well. If Fed Ex increases the price, the strategy team estimate that UPS [1} will achieve revenue of S 2.4 billion per year if it increases its price and {It} will achieve revenue of 51.3 billion per year if it does not increase its price. However, if FedEx does not change its price, the strategy team estimate that UPS [1} will achieve revenue of $2 billion per year if it increases its price and {It} will achieve $2.2 billion per year if it does not increase its price. UPS believes that there is a 0.25 probability that Fed Ex would increase its price. You are not required or expected to solve this problem on Precision Tree. In the interest oi iairness to everyone, we will not look at or grade any Precision Tree submission for this problem. For to" credit, you must show all your work; if you use a decision tree, please draw it,- if you use a table or other calculations, please show your work. Assume that expert iniom'Iation about FedEx' price change is available. The expert source would perform analyses on FedEx' pricing policy, and provide a report that is either \"Positive\" or \"Negative\". Historically, when FedEx actually increases its price, the probability this expert produces a Positive report is 30%: when FedEx does not increase its price, the probability that the expert produces a Negative report is SIDE-S. [c] [3 points] What is the probability of a Negative report from the expert? id} [4 points] What is the probability of FedEx increasing its price given a Positive report? What is the probability of FedEx increasing its price given a Negative reportStep by Step Solution
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