Question: 3. A decision tree is provided. Payoff ($ millions) (-5) Large Market 5.0 Produce & Market (-5) Low Mkt. -3.0 (-5) Large Market Develop Product

3. A decision tree is provided. Payoff ($

3. A decision tree is provided. Payoff ($ millions) (-5) Large Market 5.0 Produce & Market (-5) Low Mkt. -3.0 (-5) Large Market Develop Product Sell Idea 3.0 (-5) Low Mkt. 0 Lease for Royalty (5) Large Market 1.8 Sell Idea Company A (-5) Low Mkt. 1.0 (-5) Large Market Company B 5.0 (.5) Low Mkt. -1.0 1.0 a) b) c) Calculate Expected value at every node. What is the optimum decision? If your risk tolerance is $0, what is the best decision? 3. A decision tree is provided. Payoff ($ millions) (-5) Large Market 5.0 Produce & Market (-5) Low Mkt. -3.0 (-5) Large Market Develop Product Sell Idea 3.0 (-5) Low Mkt. 0 Lease for Royalty (5) Large Market 1.8 Sell Idea Company A (-5) Low Mkt. 1.0 (-5) Large Market Company B 5.0 (.5) Low Mkt. -1.0 1.0 a) b) c) Calculate Expected value at every node. What is the optimum decision? If your risk tolerance is $0, what is the best decision

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