Louisiana Is Busy Designing New Lottery Scratch Off Games In The Latest Game Bayou Boondoggle The Player Is Instructe 1 (182.19 KiB) Viewed 24 times
Louisiana is busy designing new lottery scratch-off games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win $2," or "Win $25." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $400." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $2." E can reveal "Loser" or "Win $15." The probabilities at A are 0.70, 0.19, and 0.11. The probabilities at B are 0.75 and 0.25. The probabilities at C are 0.997 and 0.003. The probabilities at D are 0.4 and 0.6. Finally, the probabilities at E are 0.92 and 0.08. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game. Choose the correct decision tree below. O A. 1 B Loser (0.70) Win $2 (0.19) Win $25 (0.11) Loser (0.75) 2 Second Chance (0.25) ON H Loser (0.4) Win $2 E Loser (0.997) 0 Win $400 (0.003) 2 25 0 (0.6) 2 D Loser (0.92) 0 Win $15 (0.08) 15 0 -400 B. 1 B Loser (0.70) Win $2 (0.19) Win $25 (0.11) Loser (0.75) 2 Second Chance (0.25) D Loser (0.997) 0 GNO Win $400 (0.003) 2 25 Loser_ (0.4) 0 Win $2 (0.6) 2 Loser (0.92) 0 Win $15 (0.08) 15 0 -400
1 B A Loser (0.997) Win $2 (0.00) Win $400 (0.003) Loser (0.75) 2 Second Chance (0.25) The best alternative is E Loser (0.70) 0 2 -400 Loser (0.4) Win $2 (0.6) 2 Loser (0.92) Win $2 (0.19) 0 0 Win $15 (0.08) 15 0 2 whose expected payoff is $ O D. 1 (round your response to two decimal places). B Loser Win $2 Win $25 Loser Second Chance Loser Win $400 E Loser 0 2 25 0 0 Win $2₂ Loser 0 Win $15 15 0 -400 Q
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