Question: I need #A1-4 Payoffs First Decision Second Decision Point 35pts (1 pt for each correct answer in the chart). Fill in your numbers where you
I need #A1-4
Payoffs First Decision Second Decision Point 35pts (1 pt for each correct answer in the chart). Fill in your numbers where you see the ? 1 Favorable Market NS Unfavorable Market Large Plant Favorable Market Small Plant Unfavorable Market Node 2 EMV ? No Plant .73 ? Survey Positive Surable EMVE ? ? ? Results 7 Survey 2 Negative Large Plant Survey Conduct Market Favorable Market Unfavorable Market Node 3 EMV Favorable Market Small Plant Unfavorable Market Node 4 EMV ? No Plant ode 1 EMV .65 36 ? .35 2 Do Not Conduct Survey 2 100% Negative Survey EMV 2 Decision EMV Large Plant Node 5 EMy Favorable Market Unfavorable Market Favorable Market Small Plant Unfavorable Market Node 6 EMV No Plant Node 7 EMV ? 50 Decision EMV 7 FAVORABLE MARKET UNFAVORABLE MARKET ALTERNATIVE ($) $375,000 Build a large Plant Build a Small Plant ($) $-145,000 $-70,000 $235,000 Do Nothing Conduct a survey $0 -$10,000 35pts (1 pt for each correct answer in the chart). Fill in your numbers where you see the ? Payoffs First Decision Point Second Decision Point 1 1 Favorable Market Unfavorable Market Large Plant Favorable Market Small Plant Unfavorable Market Node 2 EMV 224,600 No Plant .73 365000 ults Sple EM 27 -1555000 224600 73 225000 27 80000 Negative Results Survey Large Plant Node 1 EMV 157,260 -10000 Conduct Market Survey Favorable Market Unfavorable Market Node 3 EMV 142,650 Favorable Market Small Plant Unfavorable Market Node 4 EMV 112,200 No Plant .65 36 365000 .64 - 155000 35 36 225000 Do Not Conduct Survey 64 I Node 5 Emy Favorable Market Unfavorable Market Negative Survey EMV 32.200 80000 -10000 Large Plant Decision EMV 157,260 Favorable Market Unfavorable Market Small Plant Node 6 EMV 115,000 50 375000 No Plant Decision EMV 115,800 50 235000 Node 7 EMV 52500 50 -70000 Please read the instructions carefully and show your work. Use the decision tree chart provided to input the correct figures and us the space below to show your work. You will need to find the EMV for the Decision Nodes and States-of-Nature Nodes. A Decisigh Pode A State-of-Naty Node Favorable Market Construct Large Plant Unfavorable Market Favorable Market Construct Small Plant Do Nothing Unfavorable Market You will need to work from the Payoff column to get the EMV for the States-of-Nature and then the Decision Nodes. Finally, you will need to decide which plant to build if the you conduct the survey and its negative or positive, & what plant to build if no survey was taken. Each correct answer is worth 4pts (44pts total) A.1 First Decision Node EMV = A.2 Decision Node Positive Survey EMV = A.3 Decision Node Negative Survey EMV = A.4 Decision Node No Survey EMV = Payoffs First Decision Second Decision Point 35pts (1 pt for each correct answer in the chart). Fill in your numbers where you see the ? 1 Favorable Market NS Unfavorable Market Large Plant Favorable Market Small Plant Unfavorable Market Node 2 EMV ? No Plant .73 ? Survey Positive Surable EMVE ? ? ? Results 7 Survey 2 Negative Large Plant Survey Conduct Market Favorable Market Unfavorable Market Node 3 EMV Favorable Market Small Plant Unfavorable Market Node 4 EMV ? No Plant ode 1 EMV .65 36 ? .35 2 Do Not Conduct Survey 2 100% Negative Survey EMV 2 Decision EMV Large Plant Node 5 EMy Favorable Market Unfavorable Market Favorable Market Small Plant Unfavorable Market Node 6 EMV No Plant Node 7 EMV ? 50 Decision EMV 7 FAVORABLE MARKET UNFAVORABLE MARKET ALTERNATIVE ($) $375,000 Build a large Plant Build a Small Plant ($) $-145,000 $-70,000 $235,000 Do Nothing Conduct a survey $0 -$10,000 35pts (1 pt for each correct answer in the chart). Fill in your numbers where you see the ? Payoffs First Decision Point Second Decision Point 1 1 Favorable Market Unfavorable Market Large Plant Favorable Market Small Plant Unfavorable Market Node 2 EMV 224,600 No Plant .73 365000 ults Sple EM 27 -1555000 224600 73 225000 27 80000 Negative Results Survey Large Plant Node 1 EMV 157,260 -10000 Conduct Market Survey Favorable Market Unfavorable Market Node 3 EMV 142,650 Favorable Market Small Plant Unfavorable Market Node 4 EMV 112,200 No Plant .65 36 365000 .64 - 155000 35 36 225000 Do Not Conduct Survey 64 I Node 5 Emy Favorable Market Unfavorable Market Negative Survey EMV 32.200 80000 -10000 Large Plant Decision EMV 157,260 Favorable Market Unfavorable Market Small Plant Node 6 EMV 115,000 50 375000 No Plant Decision EMV 115,800 50 235000 Node 7 EMV 52500 50 -70000 Please read the instructions carefully and show your work. Use the decision tree chart provided to input the correct figures and us the space below to show your work. You will need to find the EMV for the Decision Nodes and States-of-Nature Nodes. A Decisigh Pode A State-of-Naty Node Favorable Market Construct Large Plant Unfavorable Market Favorable Market Construct Small Plant Do Nothing Unfavorable Market You will need to work from the Payoff column to get the EMV for the States-of-Nature and then the Decision Nodes. Finally, you will need to decide which plant to build if the you conduct the survey and its negative or positive, & what plant to build if no survey was taken. Each correct answer is worth 4pts (44pts total) A.1 First Decision Node EMV = A.2 Decision Node Positive Survey EMV = A.3 Decision Node Negative Survey EMV = A.4 Decision Node No Survey EMV =