Question: please solve 1 and 2 as soon as possible b) Overseas Manufacturing Co. is considering either to conduct a market research or not. If market

please solve 1 and 2 as soon as possible please solve 1 and 2 as soon as possible b)
b) Overseas Manufacturing Co. is considering either to conduct a market research or not. If market research is conducted, there is 60% chance of good market results. In case of good market results, the company can choose one of three decisions for providing the product. It can develop a new production line for manufacturing, use an existing production line, or subcontract the product to a number of smaller companies. The results from these alternatives are as follows: Decision 1: Develop a new production line Outcomes Probability Profit (SR) Great success 0.30 SR600,000 Moderate success 0.60 SR300,000 Failure 0.10 -SR100,000 Decision 2: Use existing production line Outcomes Probability Profit (SR) Great success 0.50 SR300,000 Moderate success 0.30 SR200,000 Failure 0.20 -SR40,000 Decision 3: Subcontract Outcomes Probability Moderate success 1.00 Profit (SR) SR250,000 In case of poor market results, the company will do nothing or subcontract a pilot quantity and earn SR50,000 If the company does not conduct a market research, it will invest in an alternative venture with a guaranteed profit of SR30,000. Answer the following: 1) Construct a decision tree for this decision situation. (7 points) 2) Perform the decision tree analysis to the problem. Mention the sequence of decisions should be followed. (8 points)

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