Question: 1. How many decision nodes does the tree have? _________ 2. How many chance / uncertainty nodes should the tree have? 3. What is the

1. How many decision nodes does the tree have? _________

2. How many chance / uncertainty nodes should the tree have?

3. What is the expected value of the optimal decision? $____

Myrtle Air Express has decided to offer direct service from San Jose to Myrtle Beach. Management must decide between offering a full-price service and a discount service. Management developed estimates of the contribution to profit for each type of service based upon two possible levels of demand for service to Myrtle Beach: strong and weak. The following table shows the estimated quarterly profits (in thousands of dollars): DEMAND FOR SERVICE SERVICE Strong Weak Full Price $960 -$490 Discount $670 $340 The probability that demand is strong is 0.7 and the probability that demand is weak is 0.3. The demand won't be known until after the new service is implemented

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