Based on the following sequential decision tree, compute the expected payoff of node 7. It is (typenumber only, no decimals, no dollar sign)Investment A(-$70,000)Investment B(-$50,000)15600023.30.70.15.55.3056(-$20,000)$75,000(-$17,000)(-$9,000)$80,0007840.60$45,00020.80$60,00035.65$55,000$300,000$60,000$200,000$70,000$105,000$40,000

A decision tree is the analysis of the options that are to be considered or chosen among to take the…

Answered: Based on the following sequential…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

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Based on the following sequential decision tree, compute the expected payoff of node 7. It is (type number only, no decimals, no dollar sign)