Question: 5) The payoff table (Table P5.1) shows alternatives for three new product line decisions: Gamma Knife, daVinci Heart Procedure, Prostate Seed Implants, and two states

5) The payoff table (Table P5.1) shows alternatives for three new product line decisions: Gamma Knife, daVinci Heart Procedure, Prostate Seed Implants, and two states of nature for the demand for these products. Payoffs (revenue) are given in millions of dollars. The health care facility can afford to implement only one of the product lines in the near future. Probabilities for the state of nature are estimated as in Table P5.2. a. Draw a decision tree for the product line decision. b. Using rollback procedure and EMV, what is the solution to product alternatives? Table P5.1 State of Nature Product Line Medium High Gamma Knife 10 daVinci Surgical Robot 24 36 Prostate Seed implants 40 20 35 Table P5.2 State of Nature Product Line Medium High Gamma Knife 0.65 0.35 daVinci Surgical Robot 0,60 0.40 Prostate Seed Implants 0.85 0.15

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