Question: For the decision tree problem depicted above, perform the following analyses: 1. What is the preferred decision for Yauch's YoYo Shop using the maximum expected

For the decision tree problem depicted above,

For the decision tree problem depicted above, perform the following analyses: 1. What is the preferred decision for Yauch's YoYo Shop using the maximum expected value decision criteria assuming the probability of "poor growth" is 0.6, moderate growth" is 0.2, and "strong growth" is 0.12 Show all your work. Do Nothing Poor Growth Profit = $10,000 Moderate Growth Profit = $45.000 Stromz Growth Profit = $70,000 2. What is the preferred decision for Yauch's YoYo Shop using the maximum expected value decision criteria assuming the probability of "poor growth" is 0.3, "moderate growth" is 0.4, and "strong growth" is 0.3? Show all your work. Yauch's YoYo Shop Poor Growth Profit=-580,000 (negative) Moderate Growth Profit = $75,000 Strong Gronth Profit= $120,000 3. What is the preferred decision for Yauch's YoYo Shop using the "minimax" (minimize the maximum regret) decision criteria? Show all your work. Expand 4. What is the preferred decision for Yauch's YoYo Shop using the relatively risk- averse "maximize the minimum profit" decision criteria? Show all your work. Poor Growth Profit = -560,000 (negative) Moderate Growth Profit= 565,000 Strona Granth Profit = $160,000 Nove 5. What is the preferred decision for Yauch's YoYo Shop using the relatively risk- inclined "maximize the maximum profit decision criteria? Show all your work. 6. Assuming the growth probabilities shown in part 2 above, which decision would you personally make? Explain your rationale. 7. Using the maximum expected value decision criteria and assuming the growth probabilities shown in part 1 above, what level of "Poor Growth Profit" for the "Move" option would make you indifferent between "Do Nothing" and "Move"? Hint: You might use "Solver" in Excel for this

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