Question: In a decision tree problem involving capacity planning, there was a random outcome node with three random outcomes (A,B, and C) which followed a decision

  1. In a decision tree problem involving capacity planning, there was a random outcome node with three random outcomes (A,B, and C) which followed a decision node. The probabilities for A and B are P(A)=0.4 and P(B) = 0.5. Payoff following A,B and C respectively are $10000, $5000 and $2000. The expected value of that random outcome node is:
    1. $7400
    2. $6700
    3. $17000
    4. $9800

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