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Flight decision, part 4. For the decision of Exercise 11, you’ve just learned that you are on the short list and now estimate the chance that you’ll be called for an interview is 0.70. Does that change your choice of actions?

Exercise 11

Flight decision. You are planning a trip home at the end of the semester and need to make plane reservations soon. However, you’ve just had a preliminary interview with a consulting firm that seemed to go very well. There’s a chance that they will want you to stay for a few days at the end of the semester for a round of interviews at their offices, which will mean you’ll have to change the date of the flight if you make the reservation now. Suppose that you can purchase a changeable fare for $750 or a nonrefundable fare for $650 for which a change costs $150. Construct a payoff table for this set of actions using total cost as the “payoff.”

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