Question

A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value with no survey is $62,000. If the expected value of sample information is -$7,000, what is the expected monetary value with the survey

Answer 1

$45,000

Step-by-step explanation:

market research survey

↓ ↓

Value without the survey ⇒ $62,000 Value with survey = $62,000 - . $10,000 = $52,000

↓ ↓

value without value with info.

information = $52,000 = $52,000 -

$7,000 = $45,000

It is a little hard to show a decision tree because of the writing space and the format.