Your regular tennis partner has offered a friendly wager to

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Reference no: EM13380001

Your regular tennis partner has offered a friendly wager to you. The two of you will play out one point in which you can serve. The loser pays the winner $100. If your first serve is not in play, you get a second serve. If your second serve is not in play, you lose the point.

You have two kinds of serves: a hard one and a soft one. You know that your hard serve is in play 65% of the time and, when it is in play, you win the point 75% of the time. You put your soft serve in play 88% of the time and, when it is in play, you win the point 27% of the time.

Construct a Decision Tree for this problem and answer the following questions:

1. Should you accept the wager?

2. What is the Expected Monetary Value?

3. If so, should you use your hard or soft serve?

Reference no: EM13380001

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