Note: please provide typed answer.

Question:

You have just won 10 Million rupees as part of lottery. You want to invest it in an area of you always dreamed. Construct a next 10-year decision tree model with a decision choice after every 2 years. Chances of a favorable market after 2,4, 6 and 8 years are 15, 30, 45 and 60 percent. The cost of conducting a survey to get correct information is Rs 200,000.

Define the business you would like to decide for or not.

Formulate appropriate choices and give them rational and appropriate values.

Find EV and EVPi values

Construct the decision tree and solve it with your assumed values and given data (where specified).

The whole exercise should demonstrate your ability to comprehend and apply decision tree method in real life situation.