I need help solving for c-e. I did the rest, but now I'm stuck.

websit DETAILS MY NOTES 2. 114.6/20 points] PREVIOUS ANSWERS ASWMSC115 13.6.013. ASK YOUR TEACHER PRACTICE ANOTHER Seneca He Winery recently purchased land for the purpose of establishing a new vineyard. Management is considering two varieties of white grapes for the new vineyard Chardonnay and Rising The Chardonnay grapes would be used to produce a dry Chardonnay wine, and the Riesling grapes would be used to produce a semidry Riesling wine. It takes approximately four years from the time of planting before new grapes can be harvested. This length of time creates a great deal of uncertainty concerning ture demand and makes the decision concerning the type of grapes to plant difficult. Three possibilities are being considered: Chardonnay grapes only. Riesling grapes only and both Chardonnay and Rising grapes. Seneca management decided that for planning purposes would be adequate to consider only two demand possibilities for each type of wine strong or weak. With two possibilities for each type of wine it is necessary to assess four probabilities. With the help of some forecasts in industry publication management made the following probability assessments Riesling Demand Chardonnay Demand Weak Strong 0.50 Weak 0.05 Strong 0.25 0.20 Revenue projections show an annual contribution to profit of $10.000 Seneca Honly plants Chardonnay grapes and demand is weak for Chardonnay wine, and $60,000 if the company only plants Chardonnay grapes and demand is strong for Chardonnay wine. If Seneca Hll only plants Resing grapes, the annual profit projection is $15,000 If demand is weak for Riesing grapes and $15.000 demand is strong for Riesling grapes. If Seneca plants both types of grapes, the annual profit projections are as shown in the following table Chardonnay Demand Riesling Demand Weak Strong $12,000 $30,000 $16,000 $50,000 Weak Strong 1) What is the decision to be made, what is the chance event, and what is the consequence? The decision to be made the what type of pesto punt B The chance event is and the nine The consequences the section BV Identify the alternatives for the decisions and the possible outcomes for the chance events. The alternatives for the decisions are C. Riesterbot The possible outcomes for the chance events are .... @ (b) Develop a decision tree. (Enter monetary values in thousands and percentages in decimal form.) Decision Tree Description Weak for Chardonnay 10 welussign 5) Develop a decision tree. (Enter monetary values in thousands and percentages in decimal form.) Decision Tree Description Weak for Chardonnay 10 55 Plant Chardonnay Strong for Chardonnay 60 Weak Chardonnay, Weak Riesling 12 Weak Chardonnay, Strong Riesling 50 30 Plant both grapes 1 Strong Chardonnay Weak Riesling 10 Strong Chardonnay. Strong Riesling 50 Weak for Riesling 30 15 Planting Strong for Riesling 70 (c) Use the expected valve approach to recommend which alternative Seneca Hil Winery should follow in order to maximize expected annual pront ev Plant Chardonnay EVPlant both grapes Evant Resting) The best decision is to plant Can B grapes. (d) Suppose management is concerned about the probability assessments when demand for Chardonnay wine is strong. Some believe is key for Riesing demand to hobe strong as this case Sunny the hity of strong demand for Chardonnaylandiak descand for Resis 0.05 and that the habit of stron demand for Cardona and strong demand for Risinis webassinet weak for esang 30 Plant Resting Strong for Riesling 70 95 (c) Use the expected value approach to recommend which alternative Seneca Hill Winery should folow in order to maximize expected annual profit EVPlant Chardonnay EVPlant both grapes EVI Plant Riesling) The best decision is to plant Ch@grapes. (d) Suppose management is concerned about the probability assessments when demand for Chardonnay wine is strong. Some believe it is likely tor Riesing demand to also be strong in this case Suppose the probability of strong demand for Chardonnay and weak demand for Riesling is 0.05 and that the probability of strong demand for Chardonnay and strong demand for Rising it 0.40. How does this change the recommended decision? Assume that the probabilities when Chardonnay demand is weak are stit 0.05 and 0.50. Etant Chardonnay) EVPlant both grapes) EV(Plant Riesling) The best decision is to plant both B grapes. (e) Other members of the management team expect the Chardonnay market to become saturated at some point in the future, causing a fall in prices. Suppose that the annual profit projections fall to $50,000 when demand for Chardonnay is strong and Chardonnay grapes only are planted. Using the original probability assessments, determine how this change would affect the optimal decision Ev Sant Chardonnay) EV Plant both grapes) EVPlant Resting) The best decision is to plant wo B grapes. Need Help? websit DETAILS MY NOTES 2. 114.6/20 points] PREVIOUS ANSWERS ASWMSC115 13.6.013. ASK YOUR TEACHER PRACTICE ANOTHER Seneca He Winery recently purchased land for the purpose of establishing a new vineyard. Management is considering two varieties of white grapes for the new vineyard Chardonnay and Rising The Chardonnay grapes would be used to produce a dry Chardonnay wine, and the Riesling grapes would be used to produce a semidry Riesling wine. It takes approximately four years from the time of planting before new grapes can be harvested. This length of time creates a great deal of uncertainty concerning ture demand and makes the decision concerning the type of grapes to plant difficult. Three possibilities are being considered: Chardonnay grapes only. Riesling grapes only and both Chardonnay and Rising grapes. Seneca management decided that for planning purposes would be adequate to consider only two demand possibilities for each type of wine strong or weak. With two possibilities for each type of wine it is necessary to assess four probabilities. With the help of some forecasts in industry publication management made the following probability assessments Riesling Demand Chardonnay Demand Weak Strong 0.50 Weak 0.05 Strong 0.25 0.20 Revenue projections show an annual contribution to profit of $10.000 Seneca Honly plants Chardonnay grapes and demand is weak for Chardonnay wine, and $60,000 if the company only plants Chardonnay grapes and demand is strong for Chardonnay wine. If Seneca Hll only plants Resing grapes, the annual profit projection is $15,000 If demand is weak for Riesing grapes and $15.000 demand is strong for Riesling grapes. If Seneca plants both types of grapes, the annual profit projections are as shown in the following table Chardonnay Demand Riesling Demand Weak Strong $12,000 $30,000 $16,000 $50,000 Weak Strong 1) What is the decision to be made, what is the chance event, and what is the consequence? The decision to be made the what type of pesto punt B The chance event is and the nine The consequences the section BV Identify the alternatives for the decisions and the possible outcomes for the chance events. The alternatives for the decisions are C. Riesterbot The possible outcomes for the chance events are .... @ (b) Develop a decision tree. (Enter monetary values in thousands and percentages in decimal form.) Decision Tree Description Weak for Chardonnay 10 welussign 5) Develop a decision tree. (Enter monetary values in thousands and percentages in decimal form.) Decision Tree Description Weak for Chardonnay 10 55 Plant Chardonnay Strong for Chardonnay 60 Weak Chardonnay, Weak Riesling 12 Weak Chardonnay, Strong Riesling 50 30 Plant both grapes 1 Strong Chardonnay Weak Riesling 10 Strong Chardonnay. Strong Riesling 50 Weak for Riesling 30 15 Planting Strong for Riesling 70 (c) Use the expected valve approach to recommend which alternative Seneca Hil Winery should follow in order to maximize expected annual pront ev Plant Chardonnay EVPlant both grapes Evant Resting) The best decision is to plant Can B grapes. (d) Suppose management is concerned about the probability assessments when demand for Chardonnay wine is strong. Some believe is key for Riesing demand to hobe strong as this case Sunny the hity of strong demand for Chardonnaylandiak descand for Resis 0.05 and that the habit of stron demand for Cardona and strong demand for Risinis webassinet weak for esang 30 Plant Resting Strong for Riesling 70 95 (c) Use the expected value approach to recommend which alternative Seneca Hill Winery should folow in order to maximize expected annual profit EVPlant Chardonnay EVPlant both grapes EVI Plant Riesling) The best decision is to plant Ch@grapes. (d) Suppose management is concerned about the probability assessments when demand for Chardonnay wine is strong. Some believe it is likely tor Riesing demand to also be strong in this case Suppose the probability of strong demand for Chardonnay and weak demand for Riesling is 0.05 and that the probability of strong demand for Chardonnay and strong demand for Rising it 0.40. How does this change the recommended decision? Assume that the probabilities when Chardonnay demand is weak are stit 0.05 and 0.50. Etant Chardonnay) EVPlant both grapes) EV(Plant Riesling) The best decision is to plant both B grapes. (e) Other members of the management team expect the Chardonnay market to become saturated at some point in the future, causing a fall in prices. Suppose that the annual profit projections fall to $50,000 when demand for Chardonnay is strong and Chardonnay grapes only are planted. Using the original probability assessments, determine how this change would affect the optimal decision Ev Sant Chardonnay) EV Plant both grapes) EVPlant Resting) The best decision is to plant wo B grapes. Need Help