6 a) Use the following COST decision tree and calculate the EV at node 5.b) Using the following table, what is the expected value of perfect information?1003003400200Market(2)Research100300U440020010010300No MarketResearch40011200P(F) = 0.6P(s1 | F) = 0.85P(s1|U) = 0.6P(s1) = 0.7P(U) = 0.4P (s2 | F) = 0.15P(s2 |U) = 0.4P(s2) = 03

To find the EV at node 5, one needs to find EVs of nodes 10 and 11. EV of node 10…

Answered: a) Use the following COST decision tree…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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