Question

Kirsten is trying to decide where to go for her well earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel. Given the costs and probabilities of bad weather given below, which destination should she choose? Camping Cost Model Cost Probability of bad weatherNevada $20 $80 0.2Oregon $15 $85 0.4California $30 $95 0.1a. All 3 of themb. Californiac. None of themd. Nevadae. Oregon

Answer 1

Answer:

net total value of expense = cost of camping + prob. of bad weather x motel cost

NV for different areas

Nevada = 20+0.2x8 = 36

Oregon =15+0.4x85 = 49

California = 30+0.1x95 = 39.5

The children should choose Nevada as it has lowest value of potential cost.