Question: Based on available information, a person develops a decision tree. Calculate expected value at every node. What is the optimum decision and its expected value?

Based on available information, a person develops a decision tree. Calculate expected value at every node. What is the optimum decision and its expected value? Show all work.

Based on available information, a person develops

Payoff (5 millions) (5) Large Market 5.0 Produce & Market (.5) Low Mkt. -2.0 Develop (15) Large Market Sell Idea 3.0 Product (-5) Low Mkt. 1.0 Lease for Royalty (-5) Large Market 2.2 Sell Idea Company A (5) Low Mkt. 1.2 (5) Large Market Company B 1.9 (-5) Low Mkt. 1.3 1.0

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