Question: Use the following Cost decision tree and the given expected values, what is the best decision strategy? EV 2 = 1 3 0 . 6

Use the following Cost decision tree and the given expected values, what is the best decision strategy?
EV 2=130.6 EV 5=132. and there is 1.4 cost to conduct the market research.
Note that EV 2 is not the net of the Do branch. It is calculated based on the EV 3 and EV 4 and nothing else is considered.
a.
We must run the market research as it leads to lower cost
b.
We must run the market research as the expected value of sample information is zero which means do the research
c.
We do not recommend the market research as the Don't branch has lowed cost
d.
We must run the market research to get revised probabilities
e.
We do not run the market research as doing or not doing it does not change our expected cost
Use the following Cost decision tree and calculate the EV at node 2 given the EV at node 3=140, EV at node 4=168.
P(s1)=0.75 P(F)=0.7

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