The local TV station has $150,000 available for research and wants to decide whether to market a new advertising strategy for the station. The station is located in the city, but its viewers are statewide. The station management has developed three alternatives that need to be analyzed:

Alternative 1. Test locally with a small test group, then use the results of the local study to determine whether to implement across the state.

Alternative 2. Immediately market with no studies.

Alternative 3. Immediately decide not to use the new advertising strategy (stay with the status quo advertising strategy).

In the absence of a study, the station believes the new advertising strategy has a 65% chance of success and a 35% chance of failure at the state level. If successful, the new advertising strategy will bring $300,000 additional assets, and if the advertising strategy is a failure, the station will lose $100,000 in assets. If the station does the study (which costs $30,000), there is a 60% chance of favorable outcome (local success) and a 40% chance of an unfavorable outcome (local failure). If the study shows that it is a local success, then there is an 85% chance that it will be successful across the state. If the study yields a local failure, there is only a 10% chance that it will be a state success. Build a tree diagram to assist and determine the decision for the local TV station.