Question

Decide between the four options A,B,C,D

Answer 1

At decison Node A Estimated Value , option A = Max(30, 20) = 30

For B

value at the last decision node (1) = max (50,45) = 50

Value at expected node = 0.3*40 + 0.7*50 = 47

Value at decision node (2) = max ( 47,30) = 47

Value at Decision node b = max ( 25,47) = 47

option C

Value = 0.3*60 + 0.4*40 = 34

Option D

Expected value at expected node = 0.8*40 + 0.2*50 = 42

Value at option D = max( 30,42,32) = 42

Maximum value from option A,B,C,D = max( 30,47,34,42) = 47

Solved Decision Tree