Problem 5 Decision Tree Company Trying Purchase Tickets Employees Participate Business Mee Q35719140

Problem 5. (Decision Tree) company trying to purchase tickets for its employees to participate in a business meeting There is a 7% of options, Opt $450 (but $410 only will be refunded, will cost $40 actually) chance that the meeting gets canceled. Delta airline provided two different types ion 1: a non-refundable $400 ticket or Option 2: a refundable ticket that costs Delta prices changes weekly and the company can postpone the purchase of the ticket to the next week. Also, the probability of cancelation will historical data shows that in one week reduce to 5% if we wait one week. The past closer to the flight, with 50% probability, the cost will be reduced to $300 and with 50% probability, the cost will be $600. The tickets purchased next week will be non-refundable. What is your suggestion for the company to minimize their ticket expenses? Write the problem as a decision tree and solve it. Show transcribed image text