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O C. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) Second Chance (0.30) 0 Loser (0.6) 0 Win $5 0 5 25 E Loser (0.997) Loser (0.91) 0.4) 5 Win $600 (0.003) Win $30 0.09) 30 0 -600 Q Q O D. 1 B Loser (0.997) Win $5 (0.00) Win $600 (0.003) Loser (0.70) 0 Loser (0.6) 0 Win $5 (0.4) 5 Loser (0.91)0 Win $30 (0.093 2 Second Chance (0.30) Loser (0.70) E 0 5 -600 Win $5 (0.09) 30 0 5 Q

O C. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) Second Chance (0.30) 0 Loser (0.6) 0 Win $5 0 5 25 E Loser (0.997) Loser (0.91) 0.4) 5 Win $600 (0.003) Win $30 0.09) 30 0 -600 Q Q O D. 1 B Loser (0.997) Win $5 (0.00) Win $600 (0.003) Loser (0.70) 0 Loser (0.6) 0 Win $5 (0.4) 5 Loser (0.91)0 Win $30 (0.093 2 Second Chance (0.30) Loser (0.70) E 0 5 -600 Win $5 (0.09) 30 0 5 Q

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win

 

 

O C. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) 2 Second Chance (0.30) Loser (0.997) 0 5 25 Loser (0.6) Win $5 (0.4) 5 Loser (0.91)0 Win $30 E (0.09) 30 0 Win $600 (0.003) 0 0 -600 Ⓡ D. B A Loser (0.997) Win $5 (0.00) Win $600 (0.003) Loser (0.70) 2 Second Chance (0.30) Loser (0.70) 0 5 600 Loser (0.6) Win $5 (0.4) 5 Loser (0.91) Win $30 E (0.09) 30 0 Win $5 (0.09) 0 0 5 Ⓡ
Transcribed Image Text:O C. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) 2 Second Chance (0.30) Loser (0.997) 0 5 25 Loser (0.6) Win $5 (0.4) 5 Loser (0.91)0 Win $30 E (0.09) 30 0 Win $600 (0.003) 0 0 -600 Ⓡ D. B A Loser (0.997) Win $5 (0.00) Win $600 (0.003) Loser (0.70) 2 Second Chance (0.30) Loser (0.70) 0 5 600 Loser (0.6) Win $5 (0.4) 5 Loser (0.91) Win $30 E (0.09) 30 0 Win $5 (0.09) 0 0 5 Ⓡ
Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win $5," or "Win $25." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $600." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $5." E can reveal "Loser" or "Win $30." The probabilities at A are 0.70, 0.09, and 0.21. The probabilities at B are 0.70 and 0.30. The probabilities at C are 0.997 and 0.003. The probabilities at D are 0.6 and 0.4. Finally, the probabilities at E are 0.91 and 0.09. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game. Choose the correct decision tree below. O A. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) 2 Second Chance (0.30) D Loser (0.997) 25 Loser (0.6) Win $5 (0.4) 5 Loser (0.91) 0 Win $30 Win $600 (0.003) (0.09) 30 0 600 17 B. 1 B Loser Win $5 Win $25 Loser Second Chance Loser Win $600 E 0 5 25 0 Loser 0 Win $55 Loser 0 Win $30 30 0 600 Q
Transcribed Image Text:Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win $5," or "Win $25." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $600." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $5." E can reveal "Loser" or "Win $30." The probabilities at A are 0.70, 0.09, and 0.21. The probabilities at B are 0.70 and 0.30. The probabilities at C are 0.997 and 0.003. The probabilities at D are 0.6 and 0.4. Finally, the probabilities at E are 0.91 and 0.09. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game. Choose the correct decision tree below. O A. 1 B Loser (0.70) Win $5 (0.09) Win $25 (0.21) Loser (0.70) 2 Second Chance (0.30) D Loser (0.997) 25 Loser (0.6) Win $5 (0.4) 5 Loser (0.91) 0 Win $30 Win $600 (0.003) (0.09) 30 0 600 17 B. 1 B Loser Win $5 Win $25 Loser Second Chance Loser Win $600 E 0 5 25 0 Loser 0 Win $55 Loser 0 Win $30 30 0 600 Q
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