Consider the decision a contractor faces when bidding on a construction job. The contractor must first decide on the bid amount, then after submitting the bid, waits to see if he won the contract. After winning the contract, he faces additional uncertainties with regards to materials cost, labor costs, delays, etc. Each of these uncertainties influence the final profit, and a summary of this decision is given in Figure 4.46. Build and solve the tree in Figure 4.46 using Precision-Tree. Use this problem to discuss why the most likely value (the mode) is different from the expected value. What conclusions can be drawn based on the mode, and how does this differ from the conclusions based on the expected value?

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-5-20 $30.00 Labor Cos 71 25 0.0% $7000 onts$300 53+5 310500 iatarial Cot 118.23 $7000 Labor Cos 3111 25 Contract 5750 -538011000 00% -345 3145.00 0.0% 15000 Labor Cos 1358 Costs $200 5380 317000 0.0% 5205.00 00% -530.00 61% 320.00 21 25 Costs3300 $35.00 Mataral Cost $2000 Labar Cost 6125 21.6 60.00 -0.93 Contract $700 -5350 -5343 $95.00 500.00 Lebor Cos 5-0.93 Cost $100 3120.00 5345S15500 +00%