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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 Pay
2 3 4 5 6 7 Payoff 1 $ 3 8 9 10 11 12 13 14 5 4 3 2 5 5 4 -2 5 1 4 7 ul a) The value at node 4 is b) The value at node 8 is (
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Answer #1

= 5+ 10 = 5+ bet = 5 = 8-33 X 0.20 10 3 (a) Value at Node 4. 1 x payoff 1 + x payoff 2 + 4x pay off3 + 1x pay off 4 = $x(3) +Now we have Alternative B.

Value at Node 18 - 13 = 6.5 2 • Value at Alternative A 2 Value at Alternative B. Hence Best decision is to select Alternative

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