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The following extract from a decision tree has been prepared for a decision that is to be made to choose between options P, Q and R.
What is the maximum expected value of profit at decision point Z?
Suggested Answer: C
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33 comments · newest first
RE
Renay
11 months ago
Totally agree, $6 million feels like the right choice!
DE
Delmy
11 months ago
Wait, how can it be $2.4 million? That seems off.
TE
Terina
11 months ago
$4 million seems reasonable based on the tree.
NA
Natalya
12 months ago
Definitely not $36 million, that's way too high!
MI
Milly
12 months ago
I think the max expected value is $6 million.
AL
Aliza
12 months ago
I think the answer might be $6 million, but I’m not completely confident. I remember something about weighing the outcomes based on their probabilities.
RE
Rex
1 year ago
I feel like I might be overthinking this. Is the maximum expected value just the highest profit listed, or do I need to calculate it?
RE
Ressie
1 year ago
This question seems similar to one we did in class about maximizing profits. I think I need to focus on the probabilities given for each option.
BL
Blondell
1 year ago
I remember we practiced decision trees, but I’m not sure how to calculate the expected values for each option here.
RH
Rhea
1 year ago
I've got this! Decision trees are my specialty. I can quickly crunch the numbers and identify the option with the highest expected value.
TA
Tatum
1 year ago
Okay, let's think this through step-by-step. I'll start by calculating the expected value for each option, then compare them to find the maximum.
IZ
Izetta
1 year ago
Hmm, I'm a bit unsure about this one. The decision tree has multiple branches and probabilities to consider. I'll need to double-check my work to make sure I'm not missing anything.
SH
Shenika
1 year ago
This looks like a straightforward decision tree problem. I'll carefully analyze the probabilities and expected values to determine the maximum expected value at decision point Z.
NI
Nickolas
1 year ago
Wait, are we sure the decision tree isn't upside down? That would really throw a wrench in things. I'm going to go with option B just to be safe.
ST
Stephanie
1 year ago
User 3: Option B sounds good to me too. Let's go with that.
LA
Lavonne
1 year ago
User 2: I agree, let's stick to the options given. I choose option B.
KA
Kami
1 year ago
User 1: I think the decision tree is correct, let's not worry about it being upside down.
DA
Daren
1 year ago
Ah, the old 'maximum expected value' question. I bet the exam writers have a sense of humor, hiding the answer in plain sight like that.
KI
Kimbery
1 year ago
C) $36 million
DE
Denny
1 year ago
B) $6 million
MI
Michael
1 year ago
A) $4 million
TH
Theola
2 years ago
This is a tricky one. I think I need to go back and review my decision tree concepts. The answer might be more complicated than it seems at first glance.
WE
Werner
1 year ago
I'm not sure, but I think it could be B) $6 million.
CH
Christa
1 year ago
B) $6 million
VA
Vannessa
1 year ago
I think the answer might be A) $4 million.
AU
Augustine
1 year ago
A) $4 million
RE
Regenia
2 years ago
I'm not sure how they came up with $36 million. The values at the endpoints are $4 million, $6 million, and $2.4 million, so shouldn't the answer be one of those?
AS
Ashlyn
2 years ago
Option C is clearly the answer. The maximum expected value of profit at decision point Z is $36 million, as shown in the decision tree.
NI
Nina
1 year ago
No, the correct answer is C) $36 million.
MI
Micaela
1 year ago
I think the answer is B) $6 million.
EL
Elmira
2 years ago
Why do you think it's C)?
LA
Latia
2 years ago
I disagree, I believe the answer is C) $36 million.
EL
Elmira
2 years ago
I think the answer is B) $6 million.