Question
LA#9- 8A Consider the following data for the Payoffs of Project X. Suppose the probability of the Bad and Good statuses are 0.2 and 0.5,
LA#9- 8A
Consider the following data for the Payoffs of Project X. Suppose the probability of the Bad and Good statuses are 0.2 and 0.5, respectively. Hence, a) Draw the decision tree for Project X and b) find the better alternative.
| Decision | Status | ||
| Bad | Medium | Good | |
| Alternative 1 | 6 | 8 | 11 |
| Alternative 2 | 3 | 9 | 7 |
| Alternative 3 | -3 | 11 | 9 |
| Alternative 4 | 2 | 6 | 12 |
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Data Analytics For Accounting
Authors: Vernon Richardson
3rd Edition
1264444907, 9781264444908
