Question: PLEASE ANSWER ALL QUESTIONS QUESTION 1 [CLO 2] A firm is considering constructing a Gym and is considering two locations Ocho Rios or Falmouth. Whichever

PLEASE ANSWER ALL QUESTIONS QUESTION 1 [CLO 2] A firm is considering constructing a Gym and is considering two locations Ocho Rios or Falmouth. Whichever location is selected, there is a 60% probability there will be a favourable market and a 40% probability there will be an unfavourable market. If the Gym is located in Ocho Rios, the likely payoffs are $800,000 profits if there is a favourable market and $150,000 if there is an unfavourable market. For Falmouth, the likely payoffs are \$1,000 000 for a favourable market and a loss of $120,000 if there is an unfavourable market. Required: i. Construct and label a decision tree to illustrate the choice to be made. [6 marks]

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