Several clarification of project 3 & Solution for the extra credit problem

I take 1 pts off Task III for most students. What I need is actually to show how you obtain the topology of the network. I am not satisfied with just a final network. I would consider a good project report showing the process and the reason as well.

Concerning the 2 pts off for comment of Task IV. I would take it back(I guess I am expecting too much). So the final effective full score would be 25.

Also, since this is a mini-project, its contribution to your final grade will be less than other projects.

The solution for the extra credit problem is below:

If we do not take the test, the expected cost would be $10,000 (take the insurance).

If we take the test, then depending on the test result, we can decide whether or not to take insurance.

So with 0.4 probability, the LHW would be T. Then, the P(CM|LHW) = 0.27. Since, 100,000*0.27>10,000, we definitely need to take the insurance. Hence, when LHW turns out to be true, the cost would be 10,000.

With 0.6 prob, LHW is False. Then, P(CM| not LHW) = 0.09. In this case, it is not necessary to take insurance any more. And the expected cost would be 100,000*0.09 = 9,000.

Therefore, the expected cost after taking a test would be
0.4*10,000+0.6*9,000 = 9,400.

Thus, we can pay at most 10,000-9,400 = 600 for the test. But here, the test price is $1000>$600, so it is not necessary to take the test.