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Mod 39: Decision Trees Graded Assignment Out Outcon 2 c Outcome Outcome Outcomes For this assignment you are given two problems. One is a decision on whether add sweaters or shoes to the retail mix and the other is a decision about where to locate a new restaurant. For both of these: Create a decision tree using Excel - Use "Insert" shapes or SmartArt if you want Name each worksheet Calculate expected value of each choice Highlight your choice in some way Name Your File When you save the Excel workbook, use the same naming convention as for other assignments. If I were Audrey Schroeder, my file name would be: schroedera_m39 decisiontrees 2 Outcomes Outcome - Decision - Uncertainty external event Problem 1: Sweaters or Shoes Your boss, Liam, wants to expand his retail store mix by adding either a sweater department or a shoe department. You have done some research and you estimate that you have a 75% chance of earning a gross profit of $5000 and a 25% of losing $1000 on the sweaters. On the other hand, you have a 60% chance of earning $6000 and a 40% chance of losing $1500 the shoes. If you assume the cost of either decision is the same, which department will you recommend? Problem 2: Restaurant Location You work for Angie's Steak House. The restaurant has done well so she is thinking of opening another steak house in either Chelsea or Dexter. She has asked you to look into and help her with the decision. After careful research, you have come up with these estimates. Which location would you recommend to Angie? Chelsea In looking at the economy, there is a 42% chance that the economy in Chelsea will do really well, a 37% chance it will stay the same, and a 21% chance that it will really bad. If the economy does well, there is a 71% chance that the new restaurant would earn a gross profit of $5000 the first year and a 29% chance it will earn $3000 in gross profits. If the economy stays the same, there is a 63% chance the new restaurant would earn $4500 and 37% chance that it will earn $4000 in gross profit. If the economy goes sour, the gross profit is expected to be - $5000