a. The value at node 4 = Max (Value at node 1, Pay off 4)
Value at node 1 = (1/3)*Pay off 1+(1/3)*Pay off 2+(1/3)*Pay off 3 = (1/3)*(Pay off 1+Pay off 2+Pay off 3) = (1/3)*(3+7+6) = 5.33
Pay off 4 = 4
Value at node 4 = Max (5.33,4) = 5.33
As node 4 is a square, it is a decision node. Hence a decision needs to be taken at this mode. This is pay off decision, hence the decision will be in favor of the maximum payoff.
Node 1 is a chance node. So, the expected payoff is calculated considering the probability of each payoff and adding them.
b. Value at node 8 = 0.3*Value at node 5 + 0.5*Pay off 11 + 0.2*Value at node 6
Value at node 5 = Max (Value at node 2, Pay off 10)
Value at node 2 = (1/3)*(Pay off 7+Pay off 8+Pay off 9) = (1/3)*(-7+4+3) = 0
Pay off 10 = 7
Value at node 5 = Max (0,7) = 7
Pay off 11 = (-2)
Value at node 6 = Max (Pay off 12, Value at node 3)
Value at node 3 = (1/2)*(pay off 13 + pay off 14) = (1/2)*(7+5) = 6
Pay off 12 = 4
Value at node 6 = Max (4,6) = 6
Value at node 8 = 0.3*Value at node 5 + 0.5*Pay off 11 + 0.2*Value at node 6 = 0.3*7 + 0.5*(-2) + 0.2*6 = 2.3
c.To find the best course of action, the values of each alternative has to be found.
Alternative A = value at node 7
Alternative B = value at node 8
Value at node 8 is already found which is 2.3
Value at node 7 = 0.3*Value at node 4 + 0.5*Pay off 5 + 0.2*Pay off 6
Value at node 4 is already calculated in part a, which is 5.33
Pay off 5 = 2
Pay off 6 = 4
Value at node 7 = 0.3*5.33+0.5*2+0.2*4 = 3.39
Alternative A = 3.39
Alternative B = 2.3
The best course of action is to select alternative A, as it has higher payoff as compared to alternative B.
QUESTION 2 Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table...
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 Payoffs Altem ative A 0.20 PayOff 6 9 1/3 1/3 1/3 PayOff 7 PayOff 8 PayOff 9 Alternative B 0.30 Payoff 10 0.50 8 Payoff 11 0.20 Payoff 12 1/2 6 Payoff 13 1/2 Payoff 14 4 5 6 9 Payoff 1 $ 6 الحان...
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 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 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 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 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 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 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 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 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...