Construct a Decision Tree to Help Ms

question 36

Essay

Construct a decision tree to help Ms.Rich decide whether or not to purchase insurance.Note that the tree should minimize Ms.Rich's annual expected total cost,including the possible insurance premium,deductible payment,and damage payment.In your tree,make sure to label all decision and chance nodes and include appropriate costs,payoffs and probabilities.

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Definitions:

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent and in the manufacture of organic chemicals and biofuels.

Methanol

A simple alcohol with the formula CH₃OH, used as a solvent, antifreeze, fuel, and as feedstock for chemical synthesis.

Balanced Equation

A chemical equation in which the number of atoms for each element is the same on both the reactant and product sides.

Propanol

An alcohol with the chemical formula C3H8O, used as a solvent and antiseptic.