Question: please help with decision tree Problem 1 (30 points) A company is considering whether or not to open a new store and, if yes, where

please help with decision tree
Problem 1 (30 points) A company is considering whether or not to open a new store and, if yes, where to build the store over the next 2 years. Two locations are under consideration: Irving and Euless Also, two sizes of the store can be selected: regular store and large store. The demand will be of strong growth with a probability of 0.6 and of a weak growth with a probability of 0.4. Costs of construction are given as follows: Large regular Euless $30K $15K Irving $40K $20K The annual return of the store depends on the decision and demand realization: Strong growth Weak growth Euless - Large $40K $10K Irving - Large S50K $25K Euless - regular $20K SSK Irving - regular $25K $15K Do nothing $5K $2K In case that a strong growth is observed, the company may expend the regular store to a large store with a cost of $10K at the end of the first year. Please draw the decision tree, show your steps, clearly state your decisionsStep 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
