7. Emily Watkins, a recent college graduate, faces some tough choices. Emily must decide whether to accept an offer for a job that pays $35,000 or hold out for another job that pays $45,000 a year. Emily figures there is a 75%

chance she will get an offer for the higher-paying job. The problem is that Emily has to make a decision on the lower-paying job within the next few days and she will not know about the higher-paying job for two weeks.

a. (**) Draw out the decision tree for Emily Watkins.

b. (**) What is the key decision facing Emily? What is the expected value of each decision branch?

c. (**) What other factors might Emily consider, other than expected value?