Erica is going to fly to London on August 5 and return home on August 20. It is now July 1. On… 1 answer below »

Erica is going to fly to London on August 5 and return home on August 20. It is now July 1. On July 1, she may buy a one-way ticket (for $350) or a round-trip ticket (for $660). She may also wait until August 1 to buy a ticket. On August 1, a one-way ticket will cost $370, and a round-trip ticket will cost $730. It is possible that between July 1 and August 1, her sister (who works for the airline) will be able to obtain a free one-way ticket for Erica. The probability that her sister will obtain the free ticket is .30. If Erica has bought a round-trip ticket on July 1 and her sister has obtained a free ticket, she may return “half ” of her roundtrip to the airline. In this case, her total cost will be $330 plus a $50 penalty. Use a decision tree approach to determine how to minimize Erica’s expected cost of obtaining roundtrip transportation to London.