Ms. Cooper wishes to attend a conference which would take place in Hotel Mariott or Hotel Hilton. She is not sure where the conference will take place but has to make her decision to book a room, immediately. The one-way taxi charges to and from the airport to both hotels are $50. The rooms in Hotel Mariott cost $150 per night and those in Hilton cost $100 per night. The taxi charge from Hotel Mariott to Hotel Hilton and vice-versa is $20. She needs to book a room for two nights. If she stays in the wrong hotel, she needs to take a taxi from the hotel she is staying to the conference venue and back on days 1 and 2 and take a taxi one way on day 3. a) Write the Loss Matrix. b) What should the probability of conference being conducted at Mariott be so that it does not matter where she stays?
Ms. Cooper wishes to attend a conference which would take place in Hotel Mariott or Hotel Hilton. She is
not sure where the conference will take place but has to make her decision to book a room, immediately.
The one-way taxi charges to and from the airport to both hotels are $50. The rooms in Hotel Mariott cost
$150 per night and those in Hilton cost $100 per night. The taxi charge from Hotel Mariott to Hotel Hilton
and vice-versa is $20. She needs to book a room for two nights. If she stays in the wrong hotel, she needs
to take a taxi from the hotel she is staying to the conference venue and back on days 1 and 2 and take a taxi
one way on day 3.
a) Write the Loss Matrix.
b) What should the probability of conference being conducted at Mariott be so that it does not matter where she stays?
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