From the decision tree branch shown, determine the expected values of the two outcomes if decision 03 is already selected and the maximum outcome value is sought. (This decision branch is part of a larger tree) Probability 0.4 0.3 0.3 0.6 When the probability is 0,4, the value is $60. When the probability is 0.3, the value is $-27. 0.4

From the decision tree branch shown, determine the expected values of the two outcomes if decision 03 is already selected and the maximum outcome value is sought. (This decision branch is part of a larger tree) Probability 0.4 0.3 0.3 0.6 When the probability is 0,4, the value is $60. When the probability is 0.3, the value is $-27. 0.4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

From the decision tree branch shown, determine the expected values of the two outcomes if decision D3 is already selected and the
maximum outcome value is sought. (This decision branch is part of a larger tree.)
Probability
0.4
03
0.3
0.3
0.6
When the probability is 0.4, the value is $60.
When the probability is 0.3, the value is $-27.
When the probability is 0.3, the value is $20.
When the probability is 0.6, the value is $-11.
When the probability is 0.4, the value is $6.2.
0.4
The expected value of the the top node is $
The expected value of the bottom node is $[

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