Construct and evaluate the decision tree diagram for the data. Show your working for the evaluation.

The Unique Candles Company has developed and patented a unique process for manufacturing omamental

candles. The firm has three options: $($a$)$ sell the patent, $($b$)$ produce and market the product nationally at once,

or $($c$)$ test market the product in one area and decide either to sell the patent or go in for a national launch. The

following information is available:

$($i$)$ Gross Margins $($ thousands$)$

Good Market

Fair Market

Poor Market

$($ii$)$

Marketing Costs $($ thousands$)$

Test Marketing

National Promotion

$($iii$)$ Sale of Patent $($F thousands$)$

Without Test Marketing

Following Favourable Test

Following Unfavourable Test

$($iv$)$ Probability of Test Marketing Results

Favourable Test

Unfavourable Test

$($v$)$ Probability of Market Reception

Without Test Marketing

Following Favourable Test

Following Unfavourable Test

What strategy should the firm follow?

$($MMS$,$ Mumbai, $2000)$