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Hello John, I just finished the lecture of decision tree and have a small question with example 2. The example says that if we are told from market research that the result is good, then we would either decide to do expensive refurnished or cheap one.
My question is that since we are told there is 91% chance the result is gonna be good if we are
told by the market research and the previous note said that if we did expensive one there is 2/3 chance that the result is good. Should the probability of getting a good result from expensive refurnished by informed the result is good is (2/3)*0.91?Sorry for the long question and thank you so much if you could explain that a bit!
No. If the market research had been perfect then is it said the result would be good then wewould be certain that the result would be good i.e. 100% probability.
However the research is not perfect and so if it says that the result is good then there is a 91% probability that it will be good.
Thanks a lot for your explanation sir, I think I misunderstood the meaning of the question previously.
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