Montreal Metaverse Network must decide on which one of two new blockchain games to create: RUNNY or SANDY. The costs of producing and operating the two games are similar and the average monthly subscription for either game could be low (20,000 subscribers), medium (73,000 subscribers), or high (138,000 subscribers). If the company chooses to create RUNNY, they will charge $18 per account for monthly subscription, and the probabilities of medium and high subscriptions are 0.37 and 0.33 respectively. For SANDY, there is a 58% chance that a competitive game will appear on the market. The probability of low subscription is 0.26 if no competitive game appears and 0.55 if a competitive game appears. The probability of medium subscription is 0.29 whether or not competition appears. The company will charge $24/month per account for subscription to SANDY if no competitive game appears but will only charge $13/month if competition appears. Construct a decision tree for the problem, where payoffs are total monthly subscription in dollars. For example, if RUNNY is created and subscription is medium, then subscription dollars will be $18*73000 = $1,314,000. Report answers accurate to the nearest dollar.

1. What is the expected monetary value for RUNNY? $$
2. What is the expected monetary value for SANDY if there is no competition? $$
3. What is the expected monetary value for SANDY if competition appears? $$
4. What is the expected monetary value for SANDY? $$
5. What is the expected monetary value of the optimal decision? $$
6. What is the optimal decision? Select an answer RUNNY SANDY Indifferent Neither Both