Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table:

a) Construct a decision tree.
b) Determine the best strategy using expected monetary value (EMV).
c) What is the expected value of perfect information(EVPI)?

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FAVORABLE MARKET UNFAVORABLE MARKET 5400,000 S 80,000 300,000 10,000 Build large plant Build small plant Don't build Market probabilities 04 0.6