Create an Excel spreadsheet that produces the calculations for the PDC decision tree (Figure 4.9).

Assignment 1

Read Section 4.5 in the textbook. Create an Excel spreadsheet that produces the calculations for the PDC decision tree (Figure 4.9). All of the solutions are in the textbook and the chapter PDF on Blackboard, so check your calculations to make sure you are getting the correct results. Your spreadsheet cannot have any hard coding and must provide the following:

At Node 3, the decision found using the Optimistic Approach,

At Node 3, the decision found using the Conservative Approach,

At Node 3, the decision found using the Minimax Regret Approach,

At Node 3, the expected value of perfect information,

At each chance node (circle), the expected payoff,

At each decision node (square), the decision that maximizes the expected payoff, and

The maximum amount you would be willing to pay for the market research study.