Question: Develop new process: Outcomes Probability Profit {$ million] Great success 0.30 000 Moderate success 0.60 300 Failure 0.10 -100 Use present process: Outcomes Probability Profit
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Develop new process: Outcomes Probability Profit {$ million] Great success 0.30 000 Moderate success 0.60 300 Failure 0.10 -100 Use present process: Outcomes Probability Profit {$ million) Great success 0.50 300 Moderate success 0.30 200 Failure 0.20 40 Subcontract: Outcomes Probability Profit {$ million] Moderate success 1.00 250 The cost of preparing the contract proposal is $2 million. If the company does not make a bid, it will invest in an alternative venture with a guaranteed prot of $30 million. Consuuct a sequential decision tree for this decision situation and determine whether the company should make a bid
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