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

$($i$)$ made the following probability assessments.

Riesling grapes. If Seneca plants both types of grapes, the annual profit projections are as shown in the following table.

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

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

The alternatives for the decisions are $.$ The possible outcomes for the chance events are $($c$)$ Use the expected value approach to recommend which alternative Seneca Hill Winery should follow in order to maximize expected annual profit. $($Enter monetary values in thousands of dollars.$)$

$($d$)$ Suppose management is concerned about the probability assessments when demand for Chardonnay wine is strong. Some believe it is likely for Riesling demand to also be strong in this case. Suppose the probability of strong demand for Chardonnay and weak demand for Riesling is $0\mathrm{.}05$ and that the probability of strong demand for Chardonnay and strong demand for Riesling is $0\mathrm{.}40.$ How does this change the recommended decision? Assume that the probabilities when Chardonnay demand is weak are still $0\mathrm{.}05$ and $0\mathrm{.}50.($Enter monetary values in thousands of dollars.$)$

$($e$)$ Other members of the management team expect the Chardonnay market to become saturated at some point in the future, causing a fall in prices. Suppose that the annual profit projections fall to $\backslash (\backslash$$ $50,000\backslash )$ when demand for Chardonnay is strong and Chardonnay grapes only are planted. Using the original probability assessments, determine how this change would affect the optimal decision. $($Enter monetary values in thousands of dollars.$)$