Question: construct the decision tree and answer questions Play now? Play later? You can become a millionairel That's what the junk mall said. But then there

construct the decision tree and answer questions

Play now? Play later? You can become a millionairel That's what the junk mall said. But then there was the fine print: If you act before midnight tonight (and for a mere $2500 entry fee), then here are you chances: 0.10% that you receive $5,000,000,45% that you break even and get back your entry fee, otherwise you receive nothing at all. But wait, there's morel F y $3000 more, if (and only if) you don't win the 5 million on your first attempt then you can choose to playc iore time. If you do, then we dramatically increase your probability of winning big - yes, you will hava a 4% chance of receiving $100,000 and 55% chance of winning $5000, but otherwise, you will have to pay an additional $10,000. What is your expected outcome for attempting this venture? Solve this problem using a decision tree and clearly show all calculations and the value at each node. Answer these questions: 1) should you play at all? (SS) And if so, what is my expected (net) monitary value? (10\%) 2) If you play and don t win at all on the first try, should you try again? (SN) Why? (5\%) 3) If vou play and win your moner back on the first try, should you try again? (5\%) Why? (5\%) 4) clearly show the decision tree ( 40% ) and expected net monitary value at each node (25\%)

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5. Get a third party to mediate, so that both parties have the opportunity to go back to their original negotiating point that they had before the third party put forward his/her proposal.