Question 1 (1 point) Your staff has found a person that says he is 100% confident that he can convince the Texaco CEO to take the offer Pennzoil countered to the original $2B. Going back to the original model (Decision Tree or Influence Diagram), what is the maximum amount you would pay to this person to have him use his influence? (This is known in Decision Analysis as the "Value of Wizardry".) State your answer in Billions of dollars accurate to 4 decimal places. Your Answer: Answer Question 2 (1 point) Discuss (compare and contrast) the differences between the value of information and the value of wizardry. What are the legal bounds on these two risk reduction methods in your country? op Paragraph BI U E 3 0.0% $2.00 FALSE Accept $2 Bilion 2 Accept $2 Billion? $4.63 Texaco vs. Pero 17.0% $5.00 17.0% Accepts $5 Bilion 5 Texaco Response $4.63 Counteroffer $5 Billion TRUE 0 10.0% $10.30 Refuses Counter offer 50.0% 0 20.0% Large Award 10.3 Final Court Decision $4.56 50.0% Medium Award 5 30.0% No Award 0 6.6% $10.30 25.0% $5.00 15.0% $0.00 20.0% Large Award 10.3 Final Court Decision $4.56 Medium Award 50.0% 5 30.0% No Award 0 Refuse 53 billion TRUE 0 16.5% $5.00 9.9% $0.00 Texaco Counteroffersson .0% 0 Pennzoil Reaction $4.56 Accept 53 Bilion FALSE 0.0% $3.00 Question 1 (1 point) Your staff has found a person that says he is 100% confident that he can convince the Texaco CEO to take the offer Pennzoil countered to the original $2B. Going back to the original model (Decision Tree or Influence Diagram), what is the maximum amount you would pay to this person to have him use his influence? (This is known in Decision Analysis as the "Value of Wizardry".) State your answer in Billions of dollars accurate to 4 decimal places. Your Answer: Answer Question 2 (1 point) Discuss (compare and contrast) the differences between the value of information and the value of wizardry. What are the legal bounds on these two risk reduction methods in your country? op Paragraph BI U E 3 0.0% $2.00 FALSE Accept $2 Bilion 2 Accept $2 Billion? $4.63 Texaco vs. Pero 17.0% $5.00 17.0% Accepts $5 Bilion 5 Texaco Response $4.63 Counteroffer $5 Billion TRUE 0 10.0% $10.30 Refuses Counter offer 50.0% 0 20.0% Large Award 10.3 Final Court Decision $4.56 50.0% Medium Award 5 30.0% No Award 0 6.6% $10.30 25.0% $5.00 15.0% $0.00 20.0% Large Award 10.3 Final Court Decision $4.56 Medium Award 50.0% 5 30.0% No Award 0 Refuse 53 billion TRUE 0 16.5% $5.00 9.9% $0.00 Texaco Counteroffersson .0% 0 Pennzoil Reaction $4.56 Accept 53 Bilion FALSE 0.0% $3.00