Question: At a decision point in a decision tree, which machine would you select if you are trying to maximize payoff when the anticipated benefit of

At a decision point in a decision tree, which machine would you select if you are trying to maximize payoff when the anticipated benefit of selecting Machine

A

is $

45, 000

with a probability of

90 %

; the expected benefit of selecting Machine B is $

80, 000

with a probability of

50 %

; and the expected benefit of selecting Machine C is $

60, 000

with a probability of

75 % ?

Indifferent between A & C

At a decision point in a decision tree, which machine would

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