Solve Problem 4.9 (given below). In addition, compute the

EMV and Standard Deviation for each strategy and interpret the findings.

a) (15 points) Solve first without the Precision Tree software

b) (15 points) Solve using Precision Tree (Hint 1: To get a risk profile for each strategy, you

need to draw the decision tree for each strategy separately. Hint 2: right click on the initial starting node (on the most left) and select decision analysis => risk profile)

4.8 Solve the decision tree in Figure 4.51 Figure 4.51 Generic decision tree for $8 Exercise 4.8 0.5) $0 (0.27) A2 (0.5) %15 $4 $10 (0.73) (0.45) (0.55) SO 4.9Create risk profiles and cumulative risk profiles for all possible strategies in Figure 451. Is one strategy stochasticallv dominant? Exnlain 4.8 Solve the decision tree in Figure 4.51 Figure 4.51 Generic decision tree for $8 Exercise 4.8 0.5) $0 (0.27) A2 (0.5) %15 $4 $10 (0.73) (0.45) (0.55) SO 4.9Create risk profiles and cumulative risk profiles for all possible strategies in Figure 451. Is one strategy stochasticallv dominant? Exnlain