Question 1: Select either question below. (50 points)

• (Source: Chapter 5 and 5 Supplement): Define decision trees and describe how they align with capacity management. Explain the concept of expected value as it relates to investment analysis. Discuss the approach to creating a decision tree and how expected value factors into the approach? Use a specific example to support your answer to this question. Explain how decision trees might be used by an operations or supply chain manager.
• (Source: Chapter 18): Explain the different forms of forecasting and the various types of quantitative forecasting models? Discuss the advantages and disadvantages of time series analyses along with the various methods of time series forecasting.