Question: For node 6, the expected value is 3%*30m+2%*250m+1%*150m-4m=3.4m.If we abandon at decision node 4, we get nothing (0m). Thus we should choose topurchase at decision
For node 6, the expected value is 3%*30m+2%*250m+1%*150m-4m=3.4m.If we abandon at decision node 4, we get nothing (0m). Thus we should choose topurchase at decision node 4.For node 7, the expected value is0.75%*30m+0.04%*250m+0.175%*150m-4m=-3.4125m.If we abandon at decision node 5, we get nothing (0m). Thus we should choose toabandon at decision node 5.For node3, the expected value is 50%*3.4m+50%*0-1m=0.7m.For node2, the expected value is 1%*30m+0.05%*250m+0.2%*150m-4m=-3.275mThus at decision
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