Tech is playing state in the last conference game of the


Tech is playing State in the last conference game of the season. Tech is trailing State 21 to 14, with 7 seconds left in the game, when Tech scores a touchdown. Still trailing 21 to20, Tech can either go for 2 points and win or go for 1 point to send the game into overtime. The conference championship will be determined by the outcome of this game. If Tech wins, it will go to the Sugar Bowl, with a payoff of $7.2 million; if it loses, it will go to the Gator Bowl, with a payoff of $1.7 million. If Tech goes for 2 points, there is a 33% chance it will be successful and win (and a 67% chance it will and lose). If it goes for 1 point, there is a 0.98 probability of success and a tie and a 0.02 probability of failure. If the teams tie, they will play overtime, during which Tech believes it has only a 20% chance of winning because of fatigue.

Use decision tree analysis to determine whether Tech should go for 1 or 2 points.

Please show all work and calculations so that I can study this example problem better.

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