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Mathematics, 17.02.2020 21:56 Studyhard3332

Modern forest management uses controlled fires to reduce fire hazards and to stimulate new forest growth. Management has the option to postpone or plan a burning. In a specific forest tract, if burning is postponed, a general administrative cost of $300 is incurred. If a controlled burning is planned, there is a 50% chance that good weather will prevail and burning will cost $3200. The results of the burning may be either successful with a probability of .6 or failure with probability .4. Successful execution will result in an estimated benefit of $6000, and an execution failure will provide only $3000 in benefits. If the weather is poor, burning will be cancelled incurring a cost of $1200 and no benefit. (A) Develop a decision tree to determine whether burning should be planned or postponed. (B) If we change the probability of weather being good to 0.3 and poor to 0.7, should we plan or postpone?

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Modern forest management uses controlled fires to reduce fire hazards and to stimulate new forest gr...
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