You are trying to get the cheapest airfare to reach your hometown. You just found on...

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You are trying to get the cheapest airfare to reach yourhometown. You just found on makemytrip.com that the ticket homewill cost $400, and it cannot be refunded or exchanged. You alsohave the option of buying a ticket for $450, which can be refundedfor $350 (and thus costs you $100). The price of tickets isexpected to change in one week, and you will have one more chanceto buy a ticket. There is a 50% chance that the ticket would cost$300, and a 50% chance that it would cost $600. Construct adecision tree and determine the best course of action to minimizethe expected expense. Assume that you (decision maker) are asensible adult who takes rational decisions!!

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After making the decision tree according to the giveninformation The best course of action of the sensible adults tominimize hisher expenses would be the regular tickets for 400 ifthe nonrefundable ticket See Answer

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