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Problem 5S-11 Determine the course of action that has the highest EMV for the accompanying tree diagram. (Round your answers to nearest whole number.) V3 60 90 30 40 50 20 60 1y -(45) 45 30 40 50 30 40 50 20 50 EV Alternative A 36.7 43.45 Alternative B Choose Alternative A

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Answer #1
Expected value of an event probability*expected payoff
Expected value of a decision sum of expected values of all events
Expected value of an alternate sum product of Probability and Expected payoff

Expected Monetary Value of decision D2a EMAX(40,(90*(1/3)+60 (1/3)+0* (1/3))) 2 1 EMV alternative A B1 0.3+44*0.5+60 *0.2 4 5C. 1 Expected Monetary Value of decision D2a 50 49 EMV alternative A 4 Bxpeciked Monciary Vale of decision D2b AO 7 Expected

EV
Alternate A 49
Alternate B 46
Choose alternate 49 Alternate A
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