Decision Trees for

HomeWork
2A
2A

- $0.3M -$0.5M replacement cost

Failure
0.6
B 0.4
Insure
No Failure $0
A
- $0.6M Failure -$1M replacement costs
Don’t Insure 0.6
C 0.4
No Failure $0
2B
- $0.5M Failure -$0.5M replacement cost
1
- $0.3M Insurance
B 0
$0
A No Failure

- $1M Failure
Predict Failure
-$1M replacement costs
No Insurance C 1
0.6 0
No Failure $0

A
- $0.3M Failure -$1M replacement cost
0.4 1

- $0.6M
Insurance
B 0
Predict No Failure $0
A No Failure

- $0.6M Failure -$1M replacement costs

No Insurance 1
C 0
No Failure $0
 2c
- $0.5M Failure -$0.5M replacement cost
1
- $0.3M Insurance
B 0
Failure Non-Failure
$0
A No Failure

- $1M Failure
-$1M replacement costs
Predict Failure
No Insurance C 1 P Correct 0.54 0.08
0.6 0
No Failure $0

A
P Not Correct 0.06 0.32
- $0.3M Failure -$1M replacement cost
0.4
Insurance
B
1
0.6 0.4
Predict No Failure - $0.6M 0
$0
A No Failure

- $0.6M Failure -$1M replacement costs

No Insurance 1
C 0
No Failure $0
 - $0.3M Failure -$0.5M
0.6
B 0.4
Insure
No Failure $0
A
- $0.6M Failure -$1M
Don’t Insure 0.6
C 0.4
No Failure $0