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(Solved): Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, ...
Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c.
a) The value at node 4 =
b) The value at node 8 is = (in 1 decimal place)
c) The best course of action or decision is to select____
PLEASE ANSWER CAREFULLY
\begin{tabular}{|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|l|} \hline Pay off & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 & 13 & 14 \\ \hline\( \$ \) & 6 & 6 & 5 & \( -4 \) & 6 & 7 & \( -3 \) & 7 & 8 & 5 & 8 & 4 & 4 \\ \hline \end{tabular}
Expert Answer
Value at node 1=13×(6+6+5)=5.67 Value of node 4 = max(payoff 4, value at node 1) Value of node 4=max(5.67,?4)=5.67 Value of node 7 = 0.3*payoff at nod