An investment is believed to earn 2000 with probability 02


Question: An investment is believed to earn $2,000 with probability 0.2, $2,500 with probability 0.3, and $3,000 with probability 0.5. An alternative investment may earn $0 with probability 0.1, $3,000 with probability 0.2, $4,000 with probability 0.5, and $7,000 with probability 0.2. Construct a decision tree for this problem, and determine the investment with the highest expected monetary outcome. What are the limitations of the analysis?

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Basic Statistics: An investment is believed to earn 2000 with probability 02
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