Assume that you want to minimize expected outcomes of the given decisions. Based on the expected monetary values, what is the optimal pien noth?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Assume that you want to minimize expected outcomes of the given
decisions. Based on the expected monetary values, what is the optimal
decision path?
A
B
C
E
10%, $90
50%
$20
40%
$100
$50
$45
D
30% F
70%
G
5%
95%
50%
50%
$70
$50
$70
$30
$60
$30
At 'A', choose path to 'E' and if you reach 'F', choose path to $30
At 'A', choose path to 'C' and then choose path to $45
At 'A', choose path to 'C' and then choose path to 'D'
O At 'A', choose path to 'E' and if you reach 'F', choose path to $70
Transcribed Image Text:Assume that you want to minimize expected outcomes of the given decisions. Based on the expected monetary values, what is the optimal decision path? A B C E 10%, $90 50% $20 40% $100 $50 $45 D 30% F 70% G 5% 95% 50% 50% $70 $50 $70 $30 $60 $30 At 'A', choose path to 'E' and if you reach 'F', choose path to $30 At 'A', choose path to 'C' and then choose path to $45 At 'A', choose path to 'C' and then choose path to 'D' O At 'A', choose path to 'E' and if you reach 'F', choose path to $70
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