Set up a decision tree to find the bid that gives Genesis the highest chances of winning.

Genesis Medical Imaging is deciding whether to bid on a new contract to supply a local area hospital with a new MRI machine. Such bids are confidential and the lowest bid entered wins the contract. Genesis estimates it costs $1,000 to prepare for the bid and $900,000 for the MRI machine if it wins the contract. The following table shows the probabilities of Genesis winning the bid given the bids it submits.

Probability of Winning

Value of Bid

40%

$1,000,000

30%

$1,250,000

20%

$1,750,000

10%

$2,000,000

Set up a decision tree to find the bid that gives Genesis the highest chances of winning.

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