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Learning Goal

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Analyze decisions and strategies using probability

Start lessonBegins with The frame and testing decisions · Slides

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HSS.MD.B.7

**HSS.MD.B.7**: (+) Analyze decisions and strategies using probability concepts (e.g., product testing, medical testing, pulling a hockey goalie at the end of a game).

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HSS.MD.B.7: (+) Analyze decisions and strategies using probability concepts (e.g., product testing, medical testing, pulling a hockey goalie at the end of a game).

What you'll learn

  1. Analyze a real decision by identifying the strategies, uncertain outcomes, probabilities, and payoffs
  2. Use expected value to compare strategies, and recognize when risk or error-cost asymmetry should modify the expected-value choice
  3. Apply conditional probability to evaluate testing decisions, computing P(condition | positive) and explaining the base-rate effect
  4. Analyze a strategic timing decision (pulling the hockey goalie) by comparing each strategy's net effect on the probability of winning
  5. Communicate a probability-based recommendation that states its assumptions and limitations

Slides

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1

The frame and testing decisions

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2

Strategy timing and risk

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Practice

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