Problem 1

The WHN Company is going to introduce one the three products: widget, a hammer, and a nimnot. The market condition could be favorable, stable or unfavorable with the probabilities 0.2. 0.5. and 0.3 respectively. The monetary outcomes for each product under each condition are described in the following table:

Model a decision tree to identify which new product should be introduced in order to maximize the company's profit?

In designing a new space vehicle, NASA needs to decide whether to provide 0, 1, or 2 backup systems for a critical component of the vehicle. The first backup system, if included, comes into use only if the original system fails. The second backup system, if included, comes into use only if the original system and the first backup system both fail. NASA engineers claim that each system, independently of the others, has 1% chance of failing if called into use. Each backup system costs $70,000 to produce and install within the vehicle. Once the vehicle is in flight, the mission will be scrubbed only if all systems (the original and backups) fail. The cost of a scrubbed mission, in addition to production cost, is assessed to be $8,000,000.

Model a decision tree and identify the strategy that minimizes NASA's expected total cost.

I need as much detailed steps (screen shoots or attach a file) as possible, please.

Module/Week 7 Homework: Decision-Making Under Uncertainty BUSA 3315: Spreadsheet Modeling with Business Applications Please note: You can draw your trees either by hand on paper or in Excel. If you do it on a paper, please take a picture of the tree and insert it in your solution file. You can submit your solution as an Excel file or Word document. In either case, your solution should calculations). contain your decision trees and all necessary calculations ( not just the results of Problem 1. The WHN Company The WHEN Company is going to introduce one of the three new products: a widget, a humaner, or a cannot. The market condition could be favorable, stable, or unfavorable with the probabilities 0.2, 05. and 0.3 respectively. The monetary outcomes for each product under each condidon are described in the following table Favorable Stable Unfavorable Widget $120,090 570,000 -$75.000 Hummer|$60.000 $40,000 $20,000 Nimnot |$35.000 $301000 |$30.090 Create a decision tree to identify which new product should be latrodaced in order to maximize the company's profit? Problem 2. NASA In designing a new space vehicle, NASA needs to decide whether to provide 0, 1, or 2 backup systems for a critical component of the vehicle. The first backup system, if included, comes into use only if the original system fails. The second backup system, if included, comes into use only if the original system and the first backup system both fail. NASA engineers claim that each system, independently of the others, has 1% chance of failing if called into use. Each backup system costs $70,000 to produce and install within the vehicle. Once the vehicle is in flight, the mission will be scrubbed only if all systems (the original and backups) fail. The cost of a scrubbed mission, in addition to production cost, is assessed to be $8,000,000. Create a decision tree and identify the strategy that minimizes NASA's expected total cost