Question: Consider this decision-tree a business owner is facing while making the decision to expand the capacity in various stages of the planning horizon. Probabilities and
Consider this decision-tree a business owner is facing while making the decision to expand the capacity in various stages of the planning horizon. Probabilities and profits are also given. Help the business owner analyze the decision tree to evaluate the alternatives by answering Questions 8-10 (below).
Question 8) What is the value of p in dollars? DO NOT enter "$" or comma separators in your answer.
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Question 9
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Question 9) Consider the same capacity planning problem. What is the value of q in dollars? DO NOT enter "$" or comma separators in your answer.
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Question 10
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Question 10) Similarly, enter the value of r in the space below. Do not enter "$" or comma separators in your answer.
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Question 11
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Question 11) Lastly, what is the expected profit of the business given the best decision(s)? Just type the expected value without "$" or comma separators.
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$2,000 (0.50) 27 $3,000 O 0.20 $4.500 $4,500 (0.20) $3,500 (0.30) $3,200 r=? (0.75) $2,000 (0.25)Step by Step Solution
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