Dana AlKhayyal is planning her participation to the TV contest Who Wants to be Rich. In this
Question:
Dana AlKhayyal is planning her participation to the TV contest "Who Wants to
be Rich". In this contest Dana will be required to answer to a sequence of three
consecutive questions. If she provides a correct answer to a question then she
has to decide whether to go on to the next question or to stop playing. If she
stops playing after correctly answering the first question then she receives
10,000. If she stops after providing a correct answer to the second question
then she receives 50,000, and if she correctly answers the third question then
she will receive 250,000. However, if she provides a wrong answer to any of the
second or third question then she receives 5,000 (and no award if she fails at
the first question). Dana estimates that the probabilities that she will correctly
answer the first, second, third and fourth question are 0.80, 0.40, and 0.15,
respectively.
Dana wants to use a decision tree to decide how to proceed.