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On the basis of the above information, construct a decision tree to facilitate the analysis of this probiem. What should the doctors do?

On the basis of the above information, construct a decision tree to facilitate the analysis of this probiem. What should the doctors do?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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On the basis of the above information, construct a decision tree to facilitate the analysis of this problem. What should the doctors do?
Transcribed Image Text:On the basis of the above information, construct a decision tree to facilitate the analysis of this problem. What should the doctors do?
Example 21.9 A few friends who have just obtained their postgraduate degree in medicine are consid- ering to start their private clinic. If the medical demand is high indicating a favourable market for the proposed clinic, the doctors could realise a net profit of Rs 8,00,000. If the market is not favourable, they could lose Rs 2,00,000-preliminary expenses needed to set up the clinic. Of course, the doctors do not have to proceed at all, in which case they have not to incur any expenditure. In the absence of any market data, the doctors think that there is a 50-50 chance that their clinic will be successful.
Transcribed Image Text:Example 21.9 A few friends who have just obtained their postgraduate degree in medicine are consid- ering to start their private clinic. If the medical demand is high indicating a favourable market for the proposed clinic, the doctors could realise a net profit of Rs 8,00,000. If the market is not favourable, they could lose Rs 2,00,000-preliminary expenses needed to set up the clinic. Of course, the doctors do not have to proceed at all, in which case they have not to incur any expenditure. In the absence of any market data, the doctors think that there is a 50-50 chance that their clinic will be successful.
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