Explain in your own words what it means when one, Microeconomics

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Explain in your own words what it means when one

Question: 1. Is it possible to solve a decision-tree version of a problem and an equivalent influence-diagram version and come up with different answers? If so, explain. If not, why not?

2. Explain in your own words what it means when one alternative stochastically dominates another.

3. The analysis of the Texaco-Pennzoil example shows that the EMV of counteroffering with $5 billion far exceeds $2 billion. Why might Liedtke want to accept the $2 billion anyway? If you were Liedtke, what is the smallest offer from Texaco that you would accept?

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