Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer...

Question

Question

Answer 1

Answer #1

(i) value of node 1 = 1/3* ( sum of payoff 1, 2 and 3) =10/3

Value at node 4 = max [ payoff 4, value of node 1] = [2,10/3] =10/3

(ii) Value of node 2 = 1/3 *[ sum of payoffs of 7,8,9] = 1/3 [ -3-4+7]=0

Value of payoff 10=6

Value of node 5 = Max [ value of node 2, value of payoff 10]=6

Value of payoff 3 = 1/2 * ( value of 13 + vaue of 14] = 0.5 *(7+3) =5

Value of payoff 12=-3

Value of node 6 = max [ Value of payoff 12, Value of payoff 3] = Max [ 5,-3]=5

Valur of node 8 = 0.3*value of payoff at node 5 + 0.5* payoff 11+0.2*Value of node 6

=0.3*6+0.5*5+0.2*5 = 5.3

Value of node 7 = 0.3*value at node 4 + 0.5*payoff 5+0.2*payoff 6

= 0.3*10/3 + 0.5*8+0.2*4 = 5.8

Best course of action is alternative A as it has highest payoff

Answer 2

Similar Homework Help Questions

Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer...

Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. Payoff 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ 7 -4 5 2 7 4 5 -3 5 3 3 2 8 6 a) The value at node 4 is b) The value at node 8 is (in 1 decimal place) c) The best course of action or decision is to...
Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer...

Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. Payoff 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ 7 -4 5 2 7 4 5 -3 5 3 3 2 8 6 a) The value at node 4 is b) The value at node 8 is (in 1 decimal place) c) The best course of action or decision is to...
Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer...

Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. Payoff 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ 5 -2 5 2 9 2 5 -5 3 4 4 -3 7 6 a) The value at node 4 is ___ b) The value at node 8 is ____ (in 1 decimal place) c) The best course of action or...

please show answers clearly Given is a Decision Tree Diagram. The Payoffs 1-14 are given in...

please show answers clearly Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c 1/3 1/3 1/3 Payoff 1 Payoff 2 Payoff 3 Payoff 4 0.30 0.50 Payoffs Alternative A Payoff 6 0.20 1/3 1/3 1/3 Payoff 7 Payoffs Payoff 9 Alternative B 5 0.30 Payoff 10 0.50 Payoff 11 0.20 Payoff 12 1/2 6 Payoff 13 1/2 Payoff 14 3 7 Payoff 1 $ 2 6 4 -4...
QUESTION 2 Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table...

QUESTION 2 Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. 1/3 1/3 Payoff 1 PayOff 2 PayOff 3 1/3 4 0.30 PayOff 4 0.50 PayOff 5 Alternative A 0.20 PayOff 6 9 1/3 1/3 PayOff 7 PayOff 8 2 1/3 PayOff 9 Alternative B 5 0.30 Payoff 10 0.50 (8 Payoff 11 0.20 PayOff 12 1/2 6 PayOff 13 1/2 PayOff 14 1 3 5 7 8...
Question Completion Status: Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the...

Question Completion Status: Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and e. 1/3 1/3 1/3 Payoff 1 Payoff 2 Payoff 3 0.30 Payoff 4 0.50 Payoff 5 Alternative A 0.20 PayOff 6 9 1/3 1/3 PayOff 7 Payoffs Payoff 1/3 5 Alternative B 0.30 Payoff 10 0.50 8 Payoff 11 0.20 Payoff 12 1/2 6 Payoff 13 1/2 Payoff 14 Click Save and submit to save and submit....

QUESTION 3 Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table...

QUESTION 3 Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. 1/3 1/3 1/3 PayOff 1 PayOff 2 Pa yoff 3 PayOff 4 0.3 0.50 Payoff 5 Alternative A 0.20 PayOff 6 9 1/3 1/3 1/3 Pa yOff 7 Pa yoff 8 PayOff 9 Alternative B 0.30 PayOff 10 0.50 PayOff 11 0.20 PayOff 12 Pa yOff 13 PayOff 14 1/2 6 3 1/2 Pavoff 1 2 3...
* Question Completion Status: QUESTION 2 Given is a Decision Tree Diagram. The Payoffs 1-14 are...

* Question Completion Status: QUESTION 2 Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. 1/3 Payoff 1 1/3 Payoff 2 1/3 4 Payoff 3 Payoff 4 0.30 0.50 Payoff 5 Alternative A 0.20 Payoff 6 9 1/3 1/3 Payoff 7 PayOff 8 PayOff 9 1/3 Alternative B 5 0.30) PayOff 10 0.50 Payoff 11 0.20 PayOff 12 1/2 6 Payoff 13 1/2 PayOff 14 ta demit Clint...
Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below 1/3...

Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below 1/3 1/3 0.50 PayOff s Altem ative A Payoff s 1/3 1/3 Altem atre Payoff 10 0.50 0.20 1/2 Payoff 14 a) The value at node 1 is b) The value at node 3 is c) The value at node 5 is (in 1 decimal place) (in 1 decimal place) in 1 decimal place) d) The value at node 7 isin 1 decimal place) (in...

Just answer problem and put letter beside answer. 1/3 1/3 Payoff 1 Payoff 2 Payoff 3...

Just answer problem and put letter beside answer. 1/3 1/3 Payoff 1 Payoff 2 Payoff 3 1/3 4 0.30 Payoff 4 0.50 Payoff 5 Alternative A 0.20 Payoff 6 9 PayOff 7 2 1/3 1/3 1/3 PayOff 8 PayOff 9 Alternative B 5 0.30 Payoff 10 0.50 18 Payoff 11 0.20 PayOff 12 1/2 6 Payoff 13 3 1/2 PayOff 14 2 3 4 5 6 7 Payoff 1 $ 3 8 9 10 11 12 13 14 5 4...