Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B,

image text in transcribed
Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win $2," or "Win $25." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $350." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $2." E can reveal "Loser" or "Win $20." The probabilities at A are 0.70, 0.19, and 0.11. The probabilities at B are 0.75 and 0.25. The probabilities at C are 0.995 and 0.005. The probabilities at D are 0.6 and 0.4. Finally, the probabilities at E are 0.94 and 0.06. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game. Choose the correct decision tree below. O A. O B. Loser (0 985) Loser (0.70) Win 52 10.o01 IN Win $2 (0.19) Vin 5350 10.0.05) 360 Win $25 (0.11) Loser (0 75) Loser (0.75) Loser (0.8) 0 Loser (0.8) 0 Win $2 Win $2 10.41 2 (0.4) 2 Loser (0.84)p Loser (0. 94)g N Second Win $20 Second Win $20 Chance (0 25) 0 08)20 Chance (0.25) 0 08)20 D Loser (0.70) Loser (0.985) Win $2 /0.19). Win $350 (0.005) -350 OD. O C. Loser (0 70) Win $2 10 191 N Win $25 10 111 Win 525 Loser (0 75) Loser (0.8) 0 Loser Win $2 (0.4) 2 Win $22 Loser (0.94)g Loser Win $20 Chance (0.25) (0 08) 20 E Second WVin $20 Loser (0.985) Chance Loser Win $350 (0.005) -350 Win $350 350 Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management An Integrated Approach

Authors: R. Dan Reid, Nada R. Sanders

7th Edition

1119497388, 978-1119497387

More Books

Students also viewed these General Management questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago

Question

=+What needs to be said first?

Answered: 1 week ago

Question

=+You couldn't expect more from a cow, could you?

Answered: 1 week ago