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2.2 The art dealer's problem An art dealer has a client who will buy the masterpiece Rain Delay for $50,000. The dealer can buy the

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2.2 The art dealer's problem An art dealer has a client who will buy the masterpiece \"Rain Delay\" for $50,000. The dealer can buy the painting now for $40,000 (making a prot of $10,000). Alternatively, he can wait one day, when the price will go down to $30,000. The dealer can also wait another day when the price will be $25,000. It the dealer does not buy by that day, then the painting will no longer be available. On each day, there is a % chance that the painting will be sold elsewhere and will no longer be available. (8.) Draw a decision tree representing the dealers decision making process. (1)) Solve the tree. What is the dealers expected prot? When should he buy the painting? 3

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