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Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students.
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When developing new systems, teams tend to focus on understanding the requirements of the system at the start of the project. Until requirements are known, it is hard to understand design and development components. Beyond this, testing is an essential part of any systems project, no matter what SDLC is applied.
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Decision Tree Assignment
Play now? Play later?
You can become a millionaire! That's what the junk mail said. But then there was the fine print:
If you send in your entry before midnight tonight, then here are your chances:
0.1% that you win $1,000,000
75% that you win nothing
Otherwise, you must PAY $1,000
But wait, there's more! If you don't win the million AND you don't have to pay on your first attempt,
then you can choose to play one more time. If you choose to play again, then here are your chances:
2% that you win $100,000
20% that you win $500
Otherwise, you must PAY $2,000
What is your expected outcome for attempting this venture? Solve this problem using
a decision tree and clearly show all calculations and the expected monetary value at each node.
Use maximization of expected value as your decision criterion.
Answer these questions:
1) Should you play at all? (5%) If you play, what is your expected (net) monetary value?
2) If you play and don't win at all on the first try (but don't lose money), should you try again? Why?
3) Clearly show the decision tree (40%) and expected net monetary value at each node