Question: 3. (40 pts) Construct a decision tree for the following decision situation and indicate the preferred alternative. Fenton and Farrah Friendly, husband-and-wife car dealers, are

3. (40 pts) Construct a decision tree for the

3. (40 pts) Construct a decision tree for the following decision situation and indicate the preferred alternative. Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealer- ship. They have three offers: from a foreign compact car company, from a U.S. producer of full- sized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table: Gasoline Availability Shortage Surplus .6 .4 Dealership Compact cars Full-sized cars Trucks $ 300,000 -100,000 120,000 $150,000 600,000 170,000

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