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Assignment #5

The student has to choose between stopping their studies to accept a job paying 1,500 monthly or continuing their studies for a potential job paying 2,500 monthly if they pass their remaining subjects, which they have a 40% probability of doing. Using a decision tree, the expected salary if continuing studies is only 1,000 monthly (2,500 * 40%) whereas the guaranteed salary from stopping studies is 1,500 monthly, so the better choice is to stop studying and take the 1,500 monthly job.

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Tricia Mae Lucero
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951 views

Assignment #5

The student has to choose between stopping their studies to accept a job paying 1,500 monthly or continuing their studies for a potential job paying 2,500 monthly if they pass their remaining subjects, which they have a 40% probability of doing. Using a decision tree, the expected salary if continuing studies is only 1,000 monthly (2,500 * 40%) whereas the guaranteed salary from stopping studies is 1,500 monthly, so the better choice is to stop studying and take the 1,500 monthly job.

Uploaded by

Tricia Mae Lucero
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Consider the problem of student who has to decide whether to stop his studies and work for a job

paying P1,500 monthly or continue his studies, after which a job awaits him paying P2,500 a
month, provided he passes his remaining subjects. He feels that the probability that he will pass
the remaining subject is 40%. Which choice is better for the students?
Use decision tree in making/choosing your decision

Pr (He will pass the remaining subjects) = 0.40


P (He will fail to pass the remaining subjects) = 1- 0.40 = 0.60

Upon the observation. He


will have 1,500 monthly
salary if he stops studying.

Stop
He should stop his studies and choose for the job
which is paying P1500 monthly because salary if he
chooses to study the calculation of it is
= 2500 x (40/100) + 0 x (60/100) = P 1000
Desicion
Theory so therefore P1500 > P 1000

He can only earn money after completing his


studies which is 2,500 monthly. It was high but
Study lesser if we calculate the probabilities of passing
his subject which only gives him 1,000 monthly
salary

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