Question: 3. Based on available information, a student develops a decision tree. Calculate expected value at every nodes. What is the optimum decision and its expected

3. Based on available information, a student develops a decision tree. Calculate expected value at every nodes. What is the optimum decision and its expected value? Show work. Payoff ($ millions) (.5) Large Market 5.0 Produce & Market (.5) Low Mkt. -2.0 Develop (5) Large Market Sell Idea 3.0 Product (.5) Low Mkt. -1.0 (.5) Large Market 2.2 Company A (5) Low Mkt. -1.2 (5) Large Market 1.9 (5) Low Mkt. -1.3 Lease for Royalty Sell Idea What is the optimum decision and expected value? If your risk tolerance is $0, what is the optimum decision and expected value? Company B 1.0

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