READ ME FIRST!!!!

$$ Please see the decision tree below. You need to fill in the appropriate values and solve it

$.$

$$ To solve it

$,$

$$you will need to start on the upper left and work your way to the right.

$$ Anytime you get to a circle node, calculate an EMV and put that number above the node.

$$ Anytime you get to a square node, just choose the maximum EMV. That is the alternative you will choose for that decision.

$$ Your decision will consist of up to

$3$

$$parts:

$1$

$)$

$$does he sell the compact or not?

$$

$2$

$)$

$$ IF he sells the compact, does he sell the luxury or standard car next?

$$

$3$

$)$

$$ IF he sells the luxury next AND it sells, does he sell the standard or not?

$$ OR IF he sells the standard next AND it sells, does he sell the luxury or not?

$$ When you have solved it correctly, you should end up with an EMV of $

$4$

$5$

$0$

$$for Node

$2$

$.$

$$

$$Color Codes:

$$ Put values above the nodes

$-$

$$EMVs for circle nodes and choice of IF he sells the luxury next AND it sells, does he sell the standard or not?

OR IF he sells the standard next AND it sells, does he sell the luxury or not?

When you have solved it correctly, you should end up with an EMV of $

$4$

$5$

$0$

$$for Node

$2$

$.$

Color Codes:

Put values above the nodes

$-$

$$EMVs for circle nodes and choice of EMV for square nodes.

Put appropriate payoff

$($

profit or loss

$)$

$$in these cells.

Put the appropriate probabilities in these cells.

State your decision here:IF he sells the luxury next AND it sells, does he sell the standard or not?

OR IF he sells the standard next AND it sells, does he sell the luxury or not?

When you have solved it correctly, you should end up with an EMV of $$450$ for Node $2.$

Color Codes:

Put values above the nodes $-$ EMVs for circle nodes and choice of EMV for square nodes.

Put appropriate payoff $($profit or loss$)$ in these cells.

Put the appropriate probabilities in these cells.

State your decision here: