Question: Determine decision strategies based on expected utility for this decision tree. Use the following utility function: Payoff Indifference Probability 500 1 350 0.89 300 0.84
Determine decision strategies based on expected utility for this decision tree. Use the following utility function:
| Payoff | Indifference Probability |
| 500 | 1 |
| 350 | 0.89 |
| 300 | 0.84 |
| 180 | 0.6 |
| 100 | 0.43 |
| 40 | 0.2 |
| 20 | 0.13 |
| 0 | 0 |
LET U(500)=1 and U(0)=0

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What is the expected utility after branch A, i.e., EU( A ) =?
A. 0.381
B. 0.68
C. 0.43
D. 0.522
E. 0.336
QUESTION 2
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What is the expected utility after branch J, i.e., EU( J ) =?
A. 0.43
B. 0.68
C. 0.522
D. 0.336
E. 0.381
QUESTION 3
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What is the expected utility after branch K, i.e., EU( K ) =?
A. 0.336
B. 0.522
C. 0.43
D. 0.381
E. 0.68
QUESTION 4
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What is the expected utility of branch B, i.e., EU( B ) =?
A. 0.381
B. 0.68
C. 0.43
D. 0.522
E. 0.336
QUESTION 5
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What is the expected utility after branch C, i.e., EU( C ) =?
A. 0.43
B. 0.68
C. 0.522
D. 0.336
E. 0.381
QUESTION 6
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Based on the maximum expected utility approach, what should be the initial decision strategy?
A. Select decision alternative A
B. Select decision alternative B
C. Select decision alternative C
D .6 0 E .4 300 L .6 F .5 500 20 M .4 40 B G .2 N .8 100 K H .3 o .2 180 350 C 100
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