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Can someone answer this question asap. Last time I posted it was. ignored... John developed a decision tree as shown below. The consequence value is
Can someone answer this question asap. Last time I posted it was. ignored...
John developed a decision tree as shown below. The consequence value is the payoff he can obtain. $8 0.5 03 (p) SO A2 0.5 SIS 0.7 54 0.4 B 0.6 SO a. Solve the decision tree and find out what is John's best decision alternative. (15 points) b. Create risk profiles for all possible strategies, Is one strategy stochastically dominant? Explain your answer, (15 points) c. John is concerned about the impact of uncertainty at chance nodes C and D. He would like to conduct a sensitivity analysis of uncertainties at C and D. What will be the strategy region for decision alternatives A and B? (15 points)Step by Step Solution
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