Please build a decision tree model and submit excel for Janssen&Janssen $($J&J$)$ is considering whether to produce a

new automatic dishwashing detergent called SqueakyClean. It will cost J&J about $$1,100,000$ to

develop and bring this new item to market. To keep things simple, lets assume that there can be only

two possible demand levels for the new product, high and low. The typical payoff from the new product

if demand is high is $$4,000,000$ versus $$600,000$ if demand is low. J&Js track record on product

development is relatively good: without any additional studies, $40\%$ of their products generate high

demand.

Prior to deciding whether or not to produce SqueakyClean, J&J can hire a market research firm

to conduct a nationwide market study of the product. The cost of the market study is $$50,000$ but the

studys predictions are not always accurate. Of all products analyzed in the past, the market research

firm predicted $52\%$ to be low demand $($LD$)$ products and $48\%$ to be high demand $($HD$)$ products. Of all

products that were predicted to have low demand, $86\%$ actually turned out to have low demand. Of all

products that were predicted to have high demand, $80\%$ actually turned out to have high demand. This

problem asks you to build a decision tree that can help J&J determine whether it is worthwhile to pay

for a market study when introducing their new product. Assume, of course, that J&J would like to

maximize their profit.

Submit an Excel spreadsheet with your model through Canvas. For full credit, within the

spreadsheet with your model, state in words the course of action that would be optimal forr j&j if it use EMV criterion