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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

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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.

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