Expanding Working Hours Alma Cafe is considering expanding their opening hours on Saturdays by 3 hours. The caf is usually open from 8am to 6pm, but there's potential for additional revenue if we were to open from 7am to 8pm. The operations team estimates that that change could generate an extra $4,000 in sales each month. However, it would also lead to additional operating costs of $2,500 per month. Based on market research and competitor analysis, the management believes there's a 60% chance that the extended hours will attract enough customers to make this worthwhile. ANSWER: Should Alma Cafe extend its working hours on Saturdays? Calculate the expected value of this decision and illustrate it on a decision tree.

Answer rating: 100% (QA)

To determine whether Alma Cafe should extend its working hours on Saturdays we can calculate the expected value of this decision The expected value is calculated by multiplying the probability of each ... View the full answer