Question: *MAKE SURE TO READ AND FOLLOW THE INSTRUCTION CAREFULLY NOTE: ANSWERS MUST BE DIGITALIZED NOT HANDWRITTEN BECAUSE I AM HAVING A HARD TIME SEEING MESSY

*MAKE SURE TO READ AND FOLLOW THE INSTRUCTION CAREFULLY

NOTE: ANSWERS MUST BE DIGITALIZED NOT HANDWRITTEN BECAUSE I AM HAVING A HARD TIME SEEING MESSY HANDWRITING

Direction: Solve the following below. Show the complete solution. Make sure to attach the illustration.

*MAKE SURE TO READ AND FOLLOW THE INSTRUCTION

Draw a decision tree for the following decision situation. Show the decision point and each chance event. Insert probability values and financial data. Use the backward reduction method to analyze the decision situation. A young lady has to decide which marriage proposal to accept, whether that of suitor A or of suitor B. She has equal feelings towards both suitors. However, somebody advised her to consider her future economic condition. She knows that A receives a monthly pay of P45,000 and considering his good qualities she is 60% certain that she would be happy. B has a monthly pay of P30,000 and she feels she is 95% certain that she would be happy. If she uses her chances of becoming happy to find her expected values, which suitor is better for her? (Let zero be the expected amount for being unhappy, since money has no value for an unhappy person)

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