An events company uses a decision tree analysis to calculate the potential payoff from hosting a...
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An events company uses a decision tree analysis to calculate the potential payoff from hosting a concert with an international artist. The management accountant for the company prepared the following: Proceeds R 640 000 Very successful Host concert Successful 0.75 Unsuccessful 0.25 Do not host concert P=0.4 P=0.3 Moderately successful R.450 000 P=0.3 Breakeven Loss The total expected proceeds from the project can be determined as? R 200 000 (R 100 000) An events company uses a decision tree analysis to calculate the potential payoff from hosting a concert with an international artist. The management accountant for the company prepared the following: Proceeds R 640 000 Very successful Host concert Successful 0.75 Unsuccessful 0.25 Do not host concert P=0.4 P=0.3 Moderately successful R.450 000 P=0.3 Breakeven Loss The total expected proceeds from the project can be determined as? R 200 000 (R 100 000)
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