Question
You need to fly from one city to another for an important meeting. You can take airline A or B. Airline A has a fare
You need to fly from one city to another for an important meeting. You can take airline A or B. Airline A has a fare of $1200 and is on time 91% of the time. If the flight is late, you will miss the important meeting and have determined the cost of this to be $3500. Airline B has a seat sale right now and the fare is $800. However, Airline B has a reputation for being late 30% of the time. Again, if the flight is late and you miss the meeting it will cost you $3500. a) Draw a decision tree. b) Calculate the Expected Monetary Value for each option. c) What option should you choose? Why?
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