Statistics Assignment: Decision Making, EMV, Bayes' Rule Analysis

This statistics assignment explores Expected Monetary Value (EMV) and Bayes' Rule in the context of business decision-making. The assignment presents two examples: the first calculates EMV to determine whether a company should proceed with a new product, including a sensitivity analysis to assess the impact of sales volume changes. The second example uses Bayes' Rule to calculate posterior probabilities based on market research predictions, determining the likelihood of good or bad market outcomes given different prediction scenarios. The document includes calculations, tables, and references to support the analysis, providing a comprehensive understanding of these statistical concepts and their application in real-world business contexts. The appendix provides detailed calculations and summaries of the examples discussed.