Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win O C.1BLoser (0.70)Win $5 (0.09)Win $25 (0.21)Loser (0.70)2SecondChance (0.30)Loser (0.997)0525Loser (0.6)Win $5(0.4) 5Loser (0.91)0Win $30E (0.09) 300Win $600 (0.003)00-600ⓇD.BALoser (0.997)Win $5 (0.00)Win $600 (0.003)Loser (0.70)2SecondChance (0.30)Loser (0.70)05600Loser (0.6)Win $5(0.4) 5Loser (0.91)Win $30E (0.09) 300Win $5 (0.09)005Ⓡ Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A canreveal "Loser," "Win $5," or "Win $25." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $600." On the second chance, the player isinstructed to scratch off D or E. D can reveal "Loser" or "Win $5." E can reveal "Loser" or "Win $30." The probabilities at A are 0.70, 0.09, and 0.21. The probabilities atB are 0.70 and 0.30. The probabilities at C are 0.997 and 0.003. The probabilities at D are 0.6 and 0.4. Finally, the probabilities at E are 0.91 and 0.09. Draw thedecision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game.Choose the correct decision tree below.O A.1BLoser (0.70)Win $5 (0.09)Win $25 (0.21)Loser (0.70)2SecondChance (0.30)DLoser (0.997)25Loser (0.6)Win $5(0.4) 5Loser (0.91)0Win $30Win $600 (0.003)(0.09) 30060017B.1BLoserWin $5Win $25LoserSecondChanceLoserWin $600E05250Loser 0Win $55Loser0Win $30300600Q

A decision tree is a flowchart-like design where each inward node addresses a decision or test on a…

O C. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) Second Chance (0.30) 0 Loser (0.6) 0 Win $5 0 5 25 E Loser (0.997) Loser (0.91) 0.4) 5 Win $600 (0.003) Win $30 0.09) 30 0 -600 Q Q O D. 1 B Loser (0.997) Win $5 (0.00) Win $600 (0.003) Loser (0.70) 0 Loser (0.6) 0 Win $5 (0.4) 5 Loser (0.91)0 Win $30 (0.093 2 Second Chance (0.30) Loser (0.70) E 0 5 -600 Win $5 (0.09) 30 0 5 Q

O C. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) Second Chance (0.30) 0 Loser (0.6) 0 Win $5 0 5 25 E Loser (0.997) Loser (0.91) 0.4) 5 Win $600 (0.003) Win $30 0.09) 30 0 -600 Q Q O D. 1 B Loser (0.997) Win $5 (0.00) Win $600 (0.003) Loser (0.70) 0 Loser (0.6) 0 Win $5 (0.4) 5 Loser (0.91)0 Win $30 (0.093 2 Second Chance (0.30) Loser (0.70) E 0 5 -600 Win $5 (0.09) 30 0 5 Q

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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Question

Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win

O C.
1
B
Loser (0.70)
Win $5 (0.09)
Win $25 (0.21)
Loser (0.70)
2
Second
Chance (0.30)
Loser (0.997)
0
5
25
Loser (0.6)
Win $5
(0.4) 5
Loser (0.91)0
Win $30
E (0.09) 30
0
Win $600 (0.003)
0
0
-600
Ⓡ
D.
B
A
Loser (0.997)
Win $5 (0.00)
Win $600 (0.003)
Loser (0.70)
2
Second
Chance (0.30)
Loser (0.70)
0
5
600
Loser (0.6)
Win $5
(0.4) 5
Loser (0.91)
Win $30
E (0.09) 30
0
Win $5 (0.09)
0
0
5
Ⓡ

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