Question: Please solve 1-2-3 properly. Step by step. Thank you. Suppose that a company has three design choices (A, B, C) for an important manufacturing decision.


Please solve 1-2-3 properly. Step by step. Thank you.
Suppose that a company has three design choices (A, B, C) for an important manufacturing decision. Additional manufactur- ing costs vary for each design depending on the manufacturing capability and an initial probability of achieving the required capability is thought to be 50%. Table below gives the details of the extra costs. Cost ($ x 1000) Design Capability not achieved Capability achieved A 100 0 B 45 10 59 4 1. [20 points) Draw the decision tree, determine the optimal strategy and explain. 2. - [10 points) Draw risk and cumulative risk profiles for the decision strategies and comment considering also the result of question 1 above. 3. - [10 points) Suppose that the probability of achieving the manufacturing capability varies. Conduct a one-way sensitivity analysis if the company uses EMV as their decision criterion by preparing a table and a 2D graph. Then, interpretStep by Step Solution
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