Amazon wants to perfect their new drone deliveries. To do this, they collect data and figure out the probability of a package arriving damaged to the consumer's house is
0.23. If your first package arrived undamaged, the probability the second package
arrives damaged is 0.13. If your first package arrived damaged, the probability the
second package arrives damaged is 0.04. In order to entice customers to use their
new drone service, they are offering a $10 Amazon credit if your first package arrives
damaged and a $30 Amazon credit if your second package arrives damaged. What is
the expected value of your Amazon credit? Draw a tree diagram to help you.
$5.44
O $7.70
O $5.58
$6.20