Based on the data:

Data for decision tree problems:

JDI, Inc. is trying to decide whether to make or buy a part (#J-45FPT). Purchasing the part would cost $1.30 each. If they design and produce it themselves, it will result in a per unit cost of $0.82. However, the design investment would be $40,000. Further, they realize that for this type of part, there is a 25% chance that the part will need to be redesigned at an additional cost of $50,000. Regardless of whether they make or buy the part, JDI will need 80,000 of these parts. Using decision trees analysis and EMV, what should JDI do?

Note: draw the decision tree and answer test1 questions with ID Decision tree

Answer the following questions

1. ID decision tree What is the expected value of the decision node?

.2. ID Decision tree What is leaf value of the path with success?

3. ID Decision tree What is leaf value of the path with failure?