Question: please show work QUESTION 15 Marie Roja is considering opening a dress shop. Her options are to open a small shop, a medium shop, or

please show work QUESTION 15 Marie Roja isplease show work

QUESTION 15 Marie Roja is considering opening a dress shop. Her options are to open a small shop, a medium shop, or no shop at alll. The market for a dress shop can be good, average, or bad. The probabilities for these three possibilities are 0.2 for a good market, 0.5 for an average market, and 0.3 for a bad market. The payoff table for the three alternatives and different market conditions is shown below. Alternative Small Shop Medium Shop No Shop Market Good Average Bad 75,000 25,000 -40,000 1,000 35,000 -60,000 0 0 0 Draw a Decision Tree for this problem and identify the alternative with the best Expected Monetary Value. Enter the Expected Monetary Values in the answer box and upload the decision tree drawing to the assignment in Blackboard TT T Arial 3 (12pt) VT

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!