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Nature Gives Company a One of Three Endowments; Then Company

Question 2

Multiple Choice

Nature gives company A one of three endowments; then company A picks one of two options.Depending on A's choice,company B picks one of three options with each one having two possible payoffs,decided by nature.How many chance forks does the decision tree depicting this have?


A) 4.
B) 9.
C) 19.
D) 28.
E) 36.

Correct Answer:

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