solve the answer a and b

In the book Making Hard Decisions: An Introduction to Decision Analysis, Robert T, Clemen presents a decision tree for a research and development decision (note that payoffs are given in millions of dollars, which is denoted by M). Based on this decision tree (shown in ( Figure 19.8), answer the following: a Should development of the research project be continued or stopped? Justify your answer by using relevant calculations, and explain your reasoning. b If development is continued and if a patent is awarded, should the new technology be licensed. or should the company develop production and marketing to sell the product directly? Justify your answer by using relevant calculations and explain your reasoning. A Decision Tree for a Research and Development Decision for Exercise 19.33 License $23M Patent technology awarded Demand high Continue $43M D = 0.7 p = 0.25 development Develop production and marketing to sell Demand medium $21M product directly p =.0.55 No patent -$2M Demand low $3M p = 0.3 p = 0.20 Stop development, which is denoted by M). Based on this decision or are SHOWl answer the following : . Should development of the research project be continued or stopped? Justify your answer by using relevant calculations explain your reasoning. . If development is continued and if a patent is awarded, should the new technology be licensed. or should the company your reasoning. develop production and marketing to sell the product directly? Justify your answer by using relevant calculations and ex A Decision Tree for a Research and Development Decision for Exercise 19.33 License $23M Patent technology awarded Continue Demand high p = 0.7 $43M p = 0.25 development Develop production and marketing to sell Demand medium $21M product directly p = 0.55 No patent -$2M Demand low $3M p = 0.3 p = 0.20 Stop development