Question: Consider the following decision tree and utility function. (Assume U(500) = 1, U(0) = 0, and that the goal is to maximize the expected

Consider the following decision tree and utility function. (Assume U(500) = 1, U(0) = 0, and that the goal is to maximize the expected value and/or the expected utility.) Decision Tree Description 0.6 0 A E 0.4 -310 L 0.6 -500 F 0.5 20 M 0.4 60 B G 0.2 N 0.8 -120 H 0.3 K 170 C 120 P 0.2 -340 Utility Function Payoff Indifference Probability 500 1.00 340 0.90 310 0.83 170 0.63 120 260 20 0.45 0.25 20 0.12 0 0.00 Determine the best decision strategy based on expected value for situation described by the decision tree and utility function provided. We should choose A. We should choose B. Then if G occurs, we should choose J. We should choose B. Then if G occurs, we should choose K. We should choose C. Determine the best decision strategies based on expected utility for situation described by the decision tree and utility function provided. We should choose A. O O O O We should choose B. Then if G occurs, we should choose J. We should choose B. Then if G occurs, we should choose K. We should choose C.

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