Question: A decision tree is provided. Payoff ( $ millions ) 5 . 0 - 3 . 0 3 . 0 0 1 . 8 1
A decision tree is provided.
Payoff $ millions
a Calculate Expected value EV at every node. Show all work.
b What is the optimum decision and EV
c If your risk tolerance is $ what is the best decision and EV
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