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Two antibiotics are available as treatment for an ear infection in children. Antibiotic A cures the infection 60% of the time, and Antibiotic B cures

Two antibiotics are available as treatment for an ear infection in children. Antibiotic A cures the infection 60% of the time, and Antibiotic B cures 90% of the time. The antibiotics work independently of one another. A doctor will recommend one of the two plans.

o Plan I: Treat with antibiotic A first. If it does not cure the infection, treat with antibiotic B.

o Plan II: Treat with antibiotic B first. If it does not cure the infection, treat with antibiotic A

(1) (4pts) If a doctor treats a child using Plan I, what is the probability that the child will be cured?

(2) (3pts) If a doctor treats a child using Plan II, there is a 96% chance that the child will be cured. The expected cost for Plan I is $83 and the expected cost for Plan II is $79. Using these results and the result from (1), which plan (Plan I or Plan II) would you recommend? Explain why.

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