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Homework answers / question archive / A decision tree is provided
A decision tree is provided. Payoff ($ millions) (.5) Large Market 5.0 Produce & Market (.5) Low Mkt. -3.0 Develop (.5) Large Market Product Sell Idea 3.0 (.5) Low Mkt. Lease for Royalty (.5) Large Market 1.8 Sell Idea Company A (.5) Low Mkt. 1.0 (.5) Large Market Company B 5.0 (.5) Low Mkt. -1.0 1.0 Calculate Expected value at every node. What is the optimum decision? If your risk tolerance is $0, what is the best decision?