Decision Tree Problem #3 When Paul sells his merchandise on eBay, he can either chose to use a fixed “Buy it Now!” price or else put the item up for auction. •For the “Buy It Now!” price, he selects the price and the product is sold or not oIf the product is sold, great! He gets the revenue. oIf the product is not sold, then he needs to set a lower price and repost the item with the reduced sales price. •If he decides to use an auction, he subsequently needs to decide how long to run his auction (5 days or 10 days). oThe advantage of the auction, compared to the “Buy It Now!” fixed price, is that he may get a higher price if there are many interested buyers who start a bidding war. However, there is also a possibility of getting a lower price, if few buyers are interested in the item. oIf he does a 5-day auction, people have less time to bid (thereby driving the final sales price higher) so his potential revenue is lower. oIf he does a 10-day auction, people have more time to get into a bidding war, so his potential revenue is higher. However, some of his buyers lose interest and forget about the auction, so he also risks getting a very low price. Draw out the decision tree, assuming the following parameters. Select the option with the highest EMV. Decision and chance outcomeLow PriceHigh PriceP(High) “Buy It Now” price$100$1200.95 Auction with 5-day window$90$1500.75 Auction with 10-day window$70$1800.50