Question: The decision tree with branch probabilities and expected values is as follows: Approved 6585 1,985,000 Highest Bid 9 EV = 1,131,250 Rejected Bid 3415 -515,000

The decision tree with branch probabilities and expected values is as follows: Approved 6585 1,985,000 Highest Bid 9 EV = 1,131,250 Rejected Bid 3415 -515,000 6 EV =214,250 Predicts Not Highest Bid Approval 8 41 Do Not Bid -15,000 Approved 0508 1,985,000 Market Highest Bid Research EV = 78,993 10 EV =-388,000 Rejected Bid .9492 -515,000 EV = -89,600 Predicts Not Highest Bid 4 Rejection -15,000 8 59 1 Do Not Bid -15,000 Approved 2,000,000 Highest Bid 11 EV = 250,000 .2 Rejected -500,000 Bid 8 EV = 50,000

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