Question: 2. Based on available information, a student develops a decision tree Payoff IS millions) (5) Large Market 5.0 Produce & Market (5) Low Mikt. -4.0

2. Based on available information, a student develops a decision tree Payoff IS millions) (5) Large Market 5.0 Produce & Market (5) Low Mikt. -4.0 (.5) Large Market 3.0 Develop Sell Idea Product (5) Low Mkt -1.0 Lease for Royalty (5) Large Market 2.0 Sell Idea Company A (15) Low Mkt. -1.0 (5) Large Market 3.2 Company B 1.5) Low Mkt -1.4 a) Calculate expected value at every node including the first node Show work. D) What is the optimum decision and its expected value? c) if your risk tolerance is so, what is the optimum decision and expected value

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