Problem $2$ Decision Tree $$ Finance Internships $(15\%)$

As a junior at THE Ohio State University, Fisher College of Business, majoring in Finance, you$$re gearing up for your upcoming summer plans. Your choices are between pursuing a Finance internship or taking up a retail job at Target. If you opt for an internship, you have the option to either stay in Columbus or explore opportunities elsewhere. The internships you$$re eyeing are:

$$ Nationwide $($Columbus$,$ OH$)$

$$ Heartland Bank $($Columbus$,$ OH$)$

$$ Amazon $($Atlanta$,$ GA$)$

$$ Boston Scientific $($Boston$,$ MA$)$

$$ JP Morgan Chase $($Chicago$,$ IL$)$

Pretend we live in a world where each student is only able to apply to one internship per summer. Using the following information, choose the internship that will offer you that highest EMV $($Expected Monetary Value$)!$

Each internship varies in terms of hourly pay, weekly working hours, duration, relocation cost, and sign$-$on bonuses. Below, you$$ll find a table with detailed information for each option:

Nationwide Heartland Bank Amazon Boston Scientific JP Morgan Chase Target

Pay $/$ Hour $$22$ $$20$ $$24$ $$26$ $$25$ $$16$

Hours $/$ Week $403040404030$

Duration $10$ wks $6$ wks $8$ wks $10$ wks $8$ wks $12$ wks

Sign on Bonus $$3,000$ $$1,000$ $$5,000$ $$10,000$ $$10,000$ $$500$

Relocation $$0$ $$0$ $$1,000$ $$2,000$ $$1,500$ $$0$

If you opt to remain in Columbus for your internship OR decide to work for Target, you$$ll stay in your current College apartment, incurring a cost of $$2,500$ for the internship period. However, if you choose to intern with Amazon, Boston Scientific, or JP Morgan Chase, and work on$-$site, they will cover your rent during the internship period.

During the application process, several factors should influence your internship choice, such as likelihood of receiving a sign$-$on bonus, the probability of securing the internship, and the availability of remote positions. Below, you$$ll find a table with detailed information for each internship$/$job option:

Nationwide Heartland Bank Amazon Boston Scientific JP Morgan Chase Target

Probability of Receiving a Sign on Bonus $56\%29\%63\%89\%92\%17\%$

Probability of Landing the Internship $73\%93\%47\%57\%52\%98\%$

Remote Position No No Yes Yes Yes No

Should you opt to work remotely for a company located out of state, you$$ll remain in your current college apartment and pay that rent. Additionally, if you choose remote work, you won$$t receive a sign$-$on bonus.

It is important to note that if you do not get the internship you applied for, we automatically assume you will work in retail for Target throughout the summer. If you do not get the retail job, we automatically assume you will not make any money.

The figure on the $$Problem $2$ Tree$$ sheet in the template is the decision tree developed by your Analytics friend. You must determine the Expected Value for each node and EMV cell in the decision tree and the proper course$($s$)$ of action. Place your answers in the Excel answer sheet $$Problem $2.125$

$fx$

Cell Styles

A

B

C

D

F

G

$H$

Decision Tree $-$ Finance Internships

$2$

$\backslash$table$[[$NODE$,$PROBABILITY,VALUE,Cholce,$\backslash$table$[[$Place X In Proper$],[$Course of Action$]]],[1,,,$Internship,$],[2,,,$WorkRetail,$],[$D$,,,$Located in Columbus,$],[3,,,$Lo cated Out of State,$],[$A$,,,$Nationwide,$],[$B$,,,$Heartland Bank,$],[$C$,,,$Amazon,$],[4,,,$Boston Scientific,$],[$E$,,,$JP Morgan Chase,$],[$F$,,,$WorkRemote,$],[5,,,$Workin Person,$]]$

NOTE: Grey shaded cells do not need avalue

You are NOT required to complete the physical decision tree on the sheet labeled $$Problem $2$ Tree.$$ However, we highly recommend you do so$!$