Qs. 1. Topic: Decision Trees Consider the following case study. - We are faced with the choice of using an "Experimental" technology or a "commercial-offthe-shelf (COTS)" technology. - The cost of choosing "Experimental" is and the cost of choosing "COTS" is - Of course both solutions could encounter "Minor Problems", which we are prepared to accept. - But unfortunately, we need to acknowledge that both alternative solutions carry a possibility of "Major Problems". This is quite likely with the Experimental technology for which we estimate an 70% probability of such problems, but even COTS have a 20% chance of major problems. - If major problems occur, we must decide whether to "Fix the Problem" or to "Limp Along." - With both the Experimental and COTS technologies, the decision would be to FIX the Problem if major problems occur since to "Limp Along" provides small rewards. - If it is successful, the "Experimental" technology promises greater rewards. - The estimated rewards for Major Problems using the Experimental Technology are as follows: i) Fix the Problem: 1,600,000 ii) Limp Along: 700,000 - The estimated rewards for Major Problems using the COTS Technology are as follows: i) Fix the Problem: 1,100,000 ii) Limp Along: 300,000 - The estimated rewards for Minor Problems using the Experimental Technology is 2,000,000. - The estimated rewards for Minor Problems using the COTS Technology is 1,300,000. Questions: a) Draw the decision tree for the above case study and try to put all the information provided above on the decision tree (in the form of edgeode labels). [10] b) Compute the path values and derive the expected monetary value (EMV) of each technology - "Experimental" and "COTS". Based on the EMVs, which technology should be chosen? [10]