1. A company developed a promising product and wants to make decisions. Based on the best...

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1. A company developed a promising product and wants to make decisions. Based on the best available information, a decision tree was drawn. Develop Product Sell Idea Lease for Royalty Produce & Market Sell Idea Company A Company B (.5) Large Market (.5) Low Mkt. (.5) Large Market (.5) Low Mkt. (.5) Large Market (.5) Low Mkt. (.5) Large Market (.5) Low Mkt. Payoff ($ millions) a) Calculate expected value at every node. Show work. b) What is the optimum decision and expected value? c) What is the optimum decision and expected value if they are seeking at least $1.3M? 5.0 -2.0 3.0 1.0 2.2 1.2 1.9 1.3 1.0 1. A company developed a promising product and wants to make decisions. Based on the best available information, a decision tree was drawn. Develop Product Sell Idea Lease for Royalty Produce & Market Sell Idea Company A Company B (.5) Large Market (.5) Low Mkt. (.5) Large Market (.5) Low Mkt. (.5) Large Market (.5) Low Mkt. (.5) Large Market (.5) Low Mkt. Payoff ($ millions) a) Calculate expected value at every node. Show work. b) What is the optimum decision and expected value? c) What is the optimum decision and expected value if they are seeking at least $1.3M? 5.0 -2.0 3.0 1.0 2.2 1.2 1.9 1.3 1.0