Question: The optimal expected payoff at decision node 2 is: $____K. (Please conduct all calculations with the precision of two decimal places after the dot.) (Please

The optimal expected payoff at decision node 2

The optimal expected payoff at decision node 2 is: $____K.

(Please conduct all calculations with the precision of two decimal places after the dot.)

(Please report your result in 000's. For example, if you result is $500K, report "500" in the space provided.)

Decision tree - basic problem setting Please solve the following decision tree to maximize the expected payoff. $100K 2 2 $120K 60% Down 65% 35% $75K US 40% $55K Down 30% $95K 70% $65K

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