rn Explain in some detail how the Precision Tree calculations in Figure 6.11 for the Acme problem

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Explain in some detail how the Precision Tree calculations in Figure 6.11 for the Acme problem are exactly the same as those for the hand-drawn decision tree in Figure 6.6. In other words, explain exactly how Precision Tree gets the monetary values in the colored cells in Figure 6.11. If your answer is negative number, enter "minus" sign. Market Great Fair Awful Total EMV ($18 x ($18x ($18 x 0.45 * $ +0.35 x $ ) = $ ) = $ ) = $ +0.20 x $ Figure 6.11 Decision Tree from Precision Tree 1 Acme single-stage new product decision 2 3 Inputs 4 Fixed cost Unit margin 5 6 7 8 Great Market A 9 Fair 10 Awful 11 12 13 14 15 16 17 18 19 20 21 22 23 New Product Decision Yes B No $6,000 $18 Probability 0.45 0.35 0.20 TRUE -$6,000 Continue with product? $1,074 FALSE 0 Great Fair Awful с 0.0% $0 All monetary values (except the unit margin in cell B5) are in $1000s, and all sales volumes are in 1000s of units. Sales volume 600 300 90 45.0% $10,800 Sales volume $1,074 35.0% $5,400 D 20.0% $1,620 Net revenue $10,800 45.0% $4,800 35.0% -$600 $0 -$4,380 $5,400 $1,620 E Figure 6.6 Equivalent Decision Tree 1074 Market product -6000 Abandon product 1074 O Great 0.45 Fair 0.35 Awful 0.20 600(18) - 6000 4800 -300(18) - 6000-600 90(18)-6000-4380 Explain in some detail how the Precision Tree calculations in Figure 6.11 for the Acme problem are exactly the same as those for the hand-drawn decision tree in Figure 6.6. In other words, explain exactly how Precision Tree gets the monetary values in the colored cells in Figure 6.11. If your answer is negative number, enter "minus" sign. Market Great Fair Awful Total EMV ($18 x ($18x ($18 x 0.45 * $ +0.35 x $ ) = $ ) = $ ) = $ +0.20 x $ Figure 6.11 Decision Tree from Precision Tree 1 Acme single-stage new product decision 2 3 Inputs 4 Fixed cost Unit margin 5 6 7 8 Great Market A 9 Fair 10 Awful 11 12 13 14 15 16 17 18 19 20 21 22 23 New Product Decision Yes B No $6,000 $18 Probability 0.45 0.35 0.20 TRUE -$6,000 Continue with product? $1,074 FALSE 0 Great Fair Awful с 0.0% $0 All monetary values (except the unit margin in cell B5) are in $1000s, and all sales volumes are in 1000s of units. Sales volume 600 300 90 45.0% $10,800 Sales volume $1,074 35.0% $5,400 D 20.0% $1,620 Net revenue $10,800 45.0% $4,800 35.0% -$600 $0 -$4,380 $5,400 $1,620 E Figure 6.6 Equivalent Decision Tree 1074 Market product -6000 Abandon product 1074 O Great 0.45 Fair 0.35 Awful 0.20 600(18) - 6000 4800 -300(18) - 6000-600 90(18)-6000-4380

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we get this with excel We have to keep in mind Documents the problem ... View the full answer