Based on the criterion provided, Adriana estimated the potential net revenue of hiring an additional dog groomer to be $$9000.$ Her estimated increased revenue is expected to be $$27,500$ and the cost of the employee would be $$18,500,$ which would leave her with $$9000$ net profit, if the condominium townhomes allow pets. Since the data reflects a $70\%$ chance of this being approved, this would be considered the more likely scenario. To quantity the expected value she could multiply $0\mathrm{.}70*$ $$9000$ which would make the estimated value of this side of the scenario $$6300$ dollars.

The question mentioned that if Adriana does not hire an additional worker, her estimated revenue would remain about the same as the previous year. If she chooses not to hire, she could potentially be leaving $$9000$ net profit on the table and remain stagnant. The bad news for Adriana is that if she hires the worker and the condominium townhomes do not allow pets, her estimated loss will be $$16,000,$ and she has a $30\%$ chance of that event occurring. Using the estimated value formula, $0\mathrm{.}30*$ $$-16000=-$$$4800$ dollars. From a risk management perspective, the value of $$6300-$$$4800=$ $$1500$ which would indicate the business decision is most likely not worth the risk in most cases. write a feedback