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I need help with only the bottom portion of this, I dont understand how to? Need Help with this portion only a Using last week's
I need help with only the bottom portion of this, I dont understand how to?
Need Help with this portion only a Using last week's home $ Utility Value sales' problem and the following utility values, solve 388,000 your decision tree from last week using utility 384,000 0.90 0 Does anything change in 365,625 0.55 terms of your preferred agent? 363,750 0.50 o Create a Risk profile and 360,000 0.40 discuss the findings 339,500 0.25 336,000 0o You are deciding between three agents to act as your seller's agent. a Each agent has the following information associated with him/her: : Agent A: 20% chance of selling at $400K; 60% of selling at $375K, 20% chance of selling at $350K; will receive 4% commission on sale Agent B: 30% chance of selling at $400K; 40% of selling at $375K, 30% chance of selling at $350K; will receive 3% commission on sale * Agent C: 100% chance of selling at $375K; will receive a 2.5% commission on sale a Note their commission is on the gross (i.e., sale) price of the house1) Build a decision tree to model your problem. 2) Create a risk profile for the agents\" expected net profit (minus commission) for each of the three agents. Does any agent exhibit deterministic or stochastic dominance? 3) Discuss any insights you achieve from the analysisStep by Step Solution
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