. Question 1 Answer the following questions using the information provided below and the decision tree. P($1) = 0.64 P(F) = 0.70 P($1 | F) = 0.72 P($1 | U) = 0.16 S, F $3,800 -$500 S. F dz $4,500 With Sample 5- F -$1,200 Information s JU da $3,800 S, JU -$500 U $4.500 $2 | U -$1,200 $3,800 Without Sample -$500 Information 51 $4,500 dz - -$1,200 a) What is the expected value of the optimal decision without sample information? $ b) If sample information is favourable (F), what is the expected value of the optimal decision? $S, U - $4,500 -$1,200 $3,800 Without Sample -$500 Information 51 dz $4,500 -$1,200 a) What is the expected value of the optimal decision without sample information? $ b) If sample information is favourable (F), what is the expected value of the optimal decision? $ c) If sample information is unfavourable (U), what is the expected value of the optimal decision? $ d) What is the expected value with sample information, EVwithSI? $ e) Calculate EV SI? f) Based on your EVSI, should you pay $160 for the sample information? O no O yesQuestion 2 The following results were obtained in a decision problem where payoffs are profits: EVSI EVwithPI 1680 5780 If the efficiency of sample information is 80%, what is the maximum expected monetary value? Maximum EMV =. Question 7 The hiring process at Queensway Staffing Agency is great, but far from perfect. Good candidates are sometimes rejected and bad ones sometimes hired. Since the agency earns profits from hiring good candidates, they also incur losses when they hire a candidate that is fired within 6 months or when they fail to hire (reject) a good candidate. They used relative frequency to determine the probability of hiring a good candidate and presented their payoffs (in $'000) as follows: Good Bad Hire 13.75 -4.75 Reject -2.5 0 Probability 0.2 0.8 Note: Payoffs in the given table are in thousands of dollars ($'000). The expected values are required below in dollars. Round to the nearest cent where necessary. a) What is the expected value of the optimal decision for Queensway? $ Queensway has recently subscribed to a premium package at Finch, an online career site. This package provides Queensway with access to candidates that are already rated on Finch. Candidates on Finch are rated F (Favourable) if they have been verified to be top performers, and rated U (Unfavourable) if they have not performed well. The probability that a candidate is Good for Queensway given rated F on Finch is 0.44, while the probability that the candidate is Bad for Queensway given rated U on Finch is 0.74. Currently, 32% of the candidates on Finch are rated F. b) What is the expected value of the optimal decision for Queensway if a candidate is rated F on Finch? $below in dollars. Round to the nearest cent where necessary. a) What is the expected value of the optimal decision for Queensway? $ Queensway has recently subscribed to a premium package at Finch, an online career site. This package provides Queensway with access to candidates that are already rated on Finch. Candidates on Finch are rated F (Favourable) if they have been verified to be top performers, and rated U (Unfavourable) if they have not performed well. The probability that a candidate is Good for Queensway given rated F on Finch is 0.44, while the probability that the candidate is Bad for Queensway given rated U on Finch is 0.74. Currently, 32% of the candidates on Finch are rated F. b) What is the expected value of the optimal decision for Queensway if a candidate is rated F on Finch? c) What is the expected value of the optimal decision for Queensway if a candidate is rated U on Finch? $ d) Calculate the expected value with sample information (EV with SI) for this problem. $ e) Calculate the expected value of sample information (EVSI) for this problem. $ f) Finch has just announced that the premium subscription will be free (cost = $0) for Queensway. Based on your EVSI, should Queensway use the subscription? Select an