swer the following questions based on the Strategy Region graph given below. When probability of high settlement is 12% and the probability of medium settlement is 40%, what is the optimal strategy? When probability of medium settlement is 20%, what is the highest probability of high settlement so that the Accept strategy to be optimal?

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Chapter1: Combinatorial Analysis
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Answer the following questions based on the Strategy Region graph given below.

  • When probability of high settlement is 12% and the probability of medium settlement is 40%, what is the optimal strategy?
  • When probability of medium settlement is 20%, what is the highest probability of high settlement so that the Accept strategy to be optimal?
**Title: Strategy Region for Node 'Settle ?'**

**Graph Explanation:**
The graph illustrates a decision-making strategy based on probability outcomes for settlement values. It is titled "Strategy Region for Node 'Settle ?'," focusing on two potential actions: "Refuse" and "Accept."

**Axes:**
- **X-Axis:** Represents the "Probability of High ($10.3) Settlement," ranging from 0% to 40%.
- **Y-Axis:** Represents the "Probability of Medium ($5) Settlement," ranging from 0% to 100%.

**Data Points:**
- **Blue Diamonds (▲):** Indicate scenarios where the strategy is to "Refuse."
- **Red Triangles (▼):** Indicate scenarios where the strategy is to "Accept."

**Detail:**
- As the probability of a high settlement increases, more data points favor the "Refuse" strategy.
- At higher probabilities of a medium settlement, the strategy fluctuates between "Refuse" and "Accept" depending on the probability of a high settlement.

This graph is a visual representation to aid decision-makers in determining the appropriate course of action based on varying probabilities of settlement outcomes.
Transcribed Image Text:**Title: Strategy Region for Node 'Settle ?'** **Graph Explanation:** The graph illustrates a decision-making strategy based on probability outcomes for settlement values. It is titled "Strategy Region for Node 'Settle ?'," focusing on two potential actions: "Refuse" and "Accept." **Axes:** - **X-Axis:** Represents the "Probability of High ($10.3) Settlement," ranging from 0% to 40%. - **Y-Axis:** Represents the "Probability of Medium ($5) Settlement," ranging from 0% to 100%. **Data Points:** - **Blue Diamonds (▲):** Indicate scenarios where the strategy is to "Refuse." - **Red Triangles (▼):** Indicate scenarios where the strategy is to "Accept." **Detail:** - As the probability of a high settlement increases, more data points favor the "Refuse" strategy. - At higher probabilities of a medium settlement, the strategy fluctuates between "Refuse" and "Accept" depending on the probability of a high settlement. This graph is a visual representation to aid decision-makers in determining the appropriate course of action based on varying probabilities of settlement outcomes.
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