For 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.)
 FIGURE 1.png)
Compute the expected value for each outcome and select the maximum at D3.
Top node: 0.4(55) + 0.30(-30) + 0.30(-10) = 10.0
Bottom node: 0.6(-7) + 0.4(0) = -4.2
Indicate 10.0 and –4.2 in ovals and select the top branch with E(value) = 10.0
You might also like to view...
Most lambs are born in early spring
Indicate whether the statement is true or false
The addition of a vernier scale on the barrel of a 0.001-inch micrometer increases the degree of precision of the instrument to 0.0002 inch.
Answer the following statement true (T) or false (F)
If you rub a balloon on a wool sweater, which of the following will result?
A. Balloon acquires a positive charge B. Balloon acquires a negative charge C. Balloon bursts D. Balloon becomes electrically neutral
Water jet cutting systems operate at pressures as high as 55,000 psi
Indicate whether the statement is true or false