Question: A decision maker has developed the decision tree shown in the following figure. Decision Tree Description A decision tree begins at a decision node from
A decision maker has developed the decision tree shown in the following figure.
Decision Tree
Description
A decision tree begins at a decision node from which two branches extend to the right. The upper branch, labeled stops at a value of
The lower branch, labeled stops at a chance node from which an upper and lower branch extend to the right. The upper branch, labeled stops at the value The lower branch, labeled stops at the value
How sensitive is the choice between and to the probabilities of states of nature and and which would you choose? Let Round your answer to four decimal places.
The decision maker should choose if is greater than or equal to and less than or equal to
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