Q2 Sketch, anew, the decision tree for the embassy party described in the text book.

"The officer in charge of a United States Embassy recreation program has decided to replenish the employees club funds by arranging a dinner. It rains nine days out of ten at the post and he must decide whether to hold the dinner indoors or out. An enclosed pavilion is available but uncomfortable, and past experience has shown turnout to be low at indoor functions, resulting in a 60 per cent chance of gaining $100 from a dinner held in the pavilion and a 40 per cent chance of losing $20. On the other hand, an outdoor dinner could be expected to earn $500 unless it rains, in which case the dinner would lose about $10" (Stokey & Zeckhauser 1977, 202).

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