Question: ok lets try again. using this data and scenrio. asnser these outputs. A . Describe a business question that could be answered by applying decision
ok lets try again. using this data and scenrio. asnser these outputs. A Describe a business question that could be answered by applying decision tree analysis and is derived from the scenario. B Identify the relevant data values required for your decision tree analysis, including the following: probabilities payoffs profits demand. C build a decision tree. D Calculate the Expected Value of each node.
State of Nature
MPC contracted with Drug Markets Analysts Inc. DMA Based on competitive research, DMA has found that there are new competing drugs recently granted FDA approval. MPC will need to be aware of the competition in the market as they consider whether to develop a new drug line, exploit the existing drug line for potential new applications, or simply continue with the current drug line at this time. The new formula is a clear advancement developed under strict guidelines and is scheduled for FDA approval in the first quarter of the year. Currently, there are only two other widely available products on the market that meet the same needs. In a highly favorable market that is supported by MPCs drug offering being considered the better solution, a new drug line with have likelihood of success with a demand of units per month, the existing drug will have a likelihood with a demand of units per month, and making no changes will be likely to succeed with a demand of units per month. In an unfavorable market, a new drug line will have a demand of units per month, the existing drug will have a demand of units per month, and making no changes will have a demand of units per month. Profits are estimated to be per unit for the new drug line, per unit for the existing drug line with new FDAapproved uses, while the current profit is per unit.
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Complete a decision tree bagram inclating each of the following: statedinature fodec calculated payafts, each expressed out to two decimal places seated values, each espressed out to twa dotimal placra
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Decision Tree Scenario
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