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Janice is considering which of two grants to apply for: one from the NSF and one from the NIH. The NSF grant is worth $

Janice is considering which of two grants to apply for: one from the NSF and one from the NIH. The NSF grant is worth $200,000 and the deadline is November 1. The NIH grant is worth $300,000 and is due December 1. It will cost her $25,000 to apply for the NSF grant. She estimates a 60% probability she will be successful. It will cost her $40,000 to apply for the NIH grant and she estimates only a 40% chance of success. If she does apply for the NSF and does not get the grant, she then has the option (given the different deadlines) of still applying for the NIH grant. However, given the shortened time schedule, it will still cost her $40K to apply and her probability of getting the grant drops to 20%. Not getting a grant simply means $0. Create a decision tree telling Janice which grant she should apply for at the moment. Given this tree, Janice should choose at this moment to apply to (NSF/NIH).

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