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Exercise 5
Chapter 1 Supplement: Decision AnalysisUse the following figure (decision tree) to answer questions 1-5:1. What is the expected payoff value for node 2? 2. What is the expected payoff value for node 3? 3. What is the expected payoff value for node 4? 4. What is the expected payoff value for node 5? 5. What would be the best decision by conducting this decision tree analysis?1400 5 2 34 1903000.40.61/31/31/36001000.40.6-10800Choice AChoice B Exercise 5
Chapter 1 Supplement: Decision AnalysisUse the following figure (decision tree) to answer questions 1-5:1. What is the expected payoff value for node 2? 2. What is the expected payoff value for node 3? 3. What is the expected payoff value for node 4? 4. What is the expected payoff value for node 5? 5. What would be the best decision by conducting this decision tree analysis?1400 5 2 34 1903000.40.61/31/31/36001000.40.6-10800Choice AChoice B
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