Decision Making and State of Nature

Allen Abbott has a wide-curving, uphill driveway leading to his garage. When ther is a heavy snow, Allen hires a local carpenter, who shovels snow on the side in teh winter, to shovel his driveway. The snow shoveler charges charges $30 to shovel the driveway. Following is a probability distribution of the number of heavy snows each winter

Heavy Snows Probability
1 .13
2 .18
3 .26
4 .23
5 .10
6 .07
7 .03
1.00

Allen is considering purchasing a new self-propelled snowblower for $625. that would allow him, his wife, or his children to clear the driveway after a snow. Discuss what you think allen's decision should be and why?

© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/statistics/probability/decision-making-and-state-of-nature-7foi