Suppose you are faced with the same alternatives and dollar outcome consequences as

in the replacement problem depicted in Fig. $16-6.$ However, the initial estimates of

probability of demand are high, $0\mathrm{.}6$; low, $0\mathrm{.}4.$ Furthermore, management's assessment

of confidence in further investigation results, using the notation in Table $16-6,$ are

$P(h|H)=0\mathrm{.}80,$

$P(h|D)=0\mathrm{.}40,$

$P(d|H)=0\mathrm{.}20,$ and

$P(d|D)=0\mathrm{.}60.$