Question

Hello, I find it easier to solve if it is in a tree diagram. Can somebody help me develop it please?

Answer 1

start with a single node. this node is a decision point. now add branches to the node signifying different alternatives. these create new nodes at end of each branch. these nodes are new decision points. further expand the tree by adding branches for each alternative at a node. Now calculate the expected values backwards. Expected value of any node is the sum of products of expected value of branches meeting at that node and respective probability of realization. keep adding backwards to reach the original node and expected value