DRAW A DECISION TREE DIAGRAM OR CHART AND ANSWER THE QUESTIONS BELOW:

DRAW A DECISION TREE DIAGRAM OR CHART AND ANSWER THE QUESTIONS ABOVE:

NOTE: THIS IS THE EXACT PROBLEM THAT WAS GIVEN TO US. EXACT NUMBERS, EXACT STATEMENTS. JUST LEAVE THIS UNANSWERED IF YOU CAN'T ANSWER IT. I COULDN'T PROVIDE ANY DETAILS OTHER THAN THIS.

Christmas is dawning upon the premier city of Makati. The year: 1988. The year 1988 has been banner year for the municipality, and the country in general Mayor Jojo Binay of the municipality desires a grand celebration by way of a huge carnival to be placed in a strategic empty lot that covers all of two and a half hectares. Mike Quesada, marketing manager of the Mickey Quick Foods, Inc. is seriously considering the participation of the firm in the grand carnival. He reviewed the letter of invitation to participate in the bidding sent to him by the mayor's office. The letter included the list of booths being bidded out for this 15-day affair. Three booths caught his attention, namely: a. Hot Dog: b. Hamburger, and c. Beverage (hot or cold, not both). Mr. Quesada obtained from his staff the various outfits interested in bidding for the aforementioned booths. He also met his staff, and the group decided that the company bid on only one of the three, inasmuch as the bidding required a fee of 5% of the bidded amount. If the bid is won by a company, this fee is later deducted from the final payment. Otherwise, the fee would be considered lost. The group likewise agreed on the following: a) Bidding Position- CONCESSION PROBABILITY OF BIDDED BID AMOUNT SUCCESS Hot Dog P 75,000 4 90.000 Hamburger P100,000 3 125,000 Beverage P 50,000 60,000 b) Profit estimates prior to deducting bidded amount - Weather Condition CONCESSION Generally Moderate Generally Cold Hot Dog P 180,000 P180,000 Hamburger P200,000 P220,000 Cold Beverage P120,000 P 75.000 Hot Beverage P40,000 P170.000 PAGASA, the Philippine weather bureau, forecasts a 70% chance for a generally cold Christmas in the entire Metro Manila area: Draw the decision tree and answer the following questions: a) Should Mickey Quick Foods, Inc. bid? b) If the company had to bid due to close ties of the owner with the mayor), for what concession? What price? 2 Christmas is dawning upon the premier city of Makati. The year: 1988. The year 1988 has been banner year for the municipality, and the country in general Mayor Jojo Binay of the municipality desires a grand celebration by way of a huge carnival to be placed in a strategic empty lot that covers all of two and a half hectares. Mike Quesada, marketing manager of the Mickey Quick Foods, Inc. is seriously considering the participation of the firm in the grand carnival. He reviewed the letter of invitation to participate in the bidding sent to him by the mayor's office. The letter included the list of booths being bidded out for this 15-day affair. Three booths caught his attention, namely: a. Hot Dog: b. Hamburger, and c. Beverage (hot or cold, not both). Mr. Quesada obtained from his staff the various outfits interested in bidding for the aforementioned booths. He also met his staff, and the group decided that the company bid on only one of the three, inasmuch as the bidding required a fee of 5% of the bidded amount. If the bid is won by a company, this fee is later deducted from the final payment. Otherwise, the fee would be considered lost. The group likewise agreed on the following: a) Bidding Position- CONCESSION PROBABILITY OF BIDDED BID AMOUNT SUCCESS Hot Dog P 75,000 4 90.000 Hamburger P100,000 3 125,000 Beverage P 50,000 60,000 b) Profit estimates prior to deducting bidded amount - Weather Condition CONCESSION Generally Moderate Generally Cold Hot Dog P 180,000 P180,000 Hamburger P200,000 P220,000 Cold Beverage P120,000 P 75.000 Hot Beverage P40,000 P170.000 PAGASA, the Philippine weather bureau, forecasts a 70% chance for a generally cold Christmas in the entire Metro Manila area: Draw the decision tree and answer the following questions: a) Should Mickey Quick Foods, Inc. bid? b) If the company had to bid due to close ties of the owner with the mayor), for what concession? What price? 2