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)
5.0
-3.0
3.0
0
1.8
1.0
8.0
-1.0
1.0
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 $0, what is the best decision and EV?
 A decision tree is provided. Payoff ($ millions) 5.0 -3.0 3.0

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