Problem 6, Section 9.1.

For the following two problems from Section 9.1, complete a tree diagram and solve each problem.

Data from problem 6

Consider a firm handling concessions for a sporting event. The firm's manager needs to know whether to stock up with coffee or cola and is formulating policies for specific weather predictions. A local agreement restricts the firm to selling only one type of beverage. The firm estimates a $1500 profit selling cola if the weather is cold and a $5000 profit selling cola if the weather is warm. The rm also estimates a $4000 profit selling coffee if it is cold and a $1000 profit selling coffee if the weather is warm. The weather forecast says that there is a 30% of a cold front; otherwise, the weather will be warm. Build a decision tree to assist with the decision. What should the firm handling concessions do?