Question: Q2) A company is developing a new device for deep-sea mining. If the company successfully markets the new device, the company can earn a profit

Q2) A company is developing a new device for deep-sea mining. If the company successfully markets the new device, the company can earn a profit of $70,000. If it is unsuccessful, the company will lose $55,000. From previous experiences, the company successfully marketed new product 55% of the time. At a cost of $5000, the effectiveness of the new device can be tested. If the test result is favorable (with 75% chance), there is an 80% chance that the device will be successful; if the test result is unfavorable (with 25% chance), there is only a 10% chance that the device will be successful. What is the optimal strategy of the company, based on the EMV criterion? Draw a decision tree for this problem and calculate the EMV for all courses of action

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