Question: ca you answer part 1,2,3 and 4 Question 4: a- As a quality control for a company, you must decide whether to accept (AI), further

ca you answer part 1,2,3 and 4

Question 4: a- As a quality control for a company, you must decide whether to accept (AI), further analyse (A2), or reject (A3) a lot of incoming material. Historical data indicates that there is a 30% chance that the lot if of poor quality (S!), and 50% that it is of a fair quality (S2). Assume the following payoff table is available. SIS2 S3 A1 20 30 90 A2 60 70 10 A3 80 50 40 1. Draw a decision tree 2. Determine the payoff for each decision and event node 3. Analyse the decision tree to determine the optimal decision strategy 4. What is the EVPI? What does this value suggest for the company? (10 marks) (20 marks) (25 marks) (20 marks)

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