$($a$)$ What is the decision to be made, what is the chance event, and what is the consequence?

The decision to be made is $$

$].$ The chance event is $[$

$7.$ The consequence is $$

Identify the alternatives for the decisions and the possible outcomes for the chance events.

The alternatives for the decisions are $-1.$ The possible outcomes for the chance events are

$($b$)$ Develop a decision tree. $($Enter monetary values in thousands and percentages in decimal form.$)$

$($c$)$ Use the expected value approach to recommend which alternative Seneca Hill Winery should follow in order to maximize expected annual profit.

EV$($Plant Chardonnay$)$

EV$($Plant both grapes$)$

EV$($Plant Riesling$)$

The best decision is to plan

prapes.

EV$($Plant Chardonnay$)$

EV$($Plant both grapes$)$

EV$($Plant Riesling$)$

The best decision is to plant

planted. Using the original probability assessments, determine how this change would affect the optimal decision.

EV$($Plant Chardonnay$)$

EV$($Plant both grapes$)$

EV$($Plant Riesling$)$

The best decision is to plan $$ grapes.