Question: Please create a decision tree! Thank you so much. - Bill Holliday is not sure what he should do . He can build a quadplex
Please create a decision tree! Thank you so much. Bill Holliday is not sure what he should do He can build a quadplex ie a building with four apartments build a duplex, gather additional information, or simply do nothing. If he gathers additional information, the results could be either favorable or unfavorable, but it would cost him $ to gather the information. Bill believes that there is a chance that the information will be favorable. If the rental market is favorable, Bill will earn $ with the quadplex or $ with the duplex. Bill doesnt have the financial resources to do both. With an unfavorable rental market, however, Bill could lose $ with the quadplex or $ with the duplex. Without gathering additional information, Bill estimates that the probability of a favorable rental market is A favorable report from the study would increase the probability of a favorable rental market to Furthermore, an unfavorable report from the additional information would decrease the probability of a favorable rental market to Of course, Bill could forget all of these numbers and do nothing. What is your advice to Bill?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
