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 0.3 0.4 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. The expected value of the the top node is $ The expected value of the bottom node is $ The (Click to select) node is selected.

Answer 1

Probality of or 014 Answer E Euplanation :- value 0.4 $60 0.3 $-27 $ 20 0.6 $-11 $6.2. +PNVN Expected value = P4, + P2 Y₂ + P₃ Yzt ..... P= Probability v= value. 4 Eupected value = pix, & Pz Y z t Ps tys to... + Proyn = (0.4%60)+(0.3%–27) +013 (20) = (60.4) +(-26. 7) + (20-3) = 54 ected value a pluit P. V₂ + ... + P VN '=(0.66-11) + (0.486.2) = (-10.4) + (6:6) = -3.8. The Expected value of top Node in 1854 The Eupected value of bottom node in

Diagrame 09860 $ 546 0.3 $-24 0-3 $20 | 0 06 4-11 -3.9 _ 6 4 6.2.