Do not create a decision tree using the software mentioned in the problem description. Instead, recreate the payoff table in your worksheet and use Excel functions to determine which decision alternative is optimal. Also determine whether Stephanie Mille should pay the $7,000 for perfect information. Show your work.

6. Stephanie Mills plans to open a hair salon close to Purdue campus. She has three difference strategies: opening a small-size shop, medium-size shop, and a large- size shop. She estimates the profit and probability for difference favorable markets: Good Market, Fair Market, and Bad Market (refer to the table). Additionally, ZS Consulting Co. offers Stephanie a deal to do a marketing research for her. If Kim pays them $7,000, she can get the perfect information provided by ZS. Do you agree to accept this offer or not? FAVORABLE MARKET SHOP SIZE GOOD (s) FAIR (S2) BAD (53) SMALL (d) $10,000 $8,000 $5,000 MEDIUM (02) $30,000 $20,000 $0 HIGH (dz) $50,000 $10,000 -$5,000 PROBABILITY 35% 40% 25% a. Use PrecisionTree to create a decision tree and find the Optimal Strategy. b. What is the Policy Suggestion? c. Change the payoff value for the large-size shop and Good market with a change range from -25% to 25%; Set up 10 iterations; Show the Sensitivity and Strategy Reports