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

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, B and C: P(A)=0.4, P(B) = 0.3 and P(C) = 0.3. Payoff following A,B and C respectively are $10000, $5000 and $4000. Expected value of that random outcome node is:

Muliptle Choice:

  • $5700

  • Not have enough information.

  • $7700

  • $6700

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