Question 3 [20] gap existed for a cycle shop in hometown. The decision facing you is whether to open a small shop, a large your activities related to cycling and you promote the sport at every opportunity. Being You have been an enthusiastic cyclist most of your adult life. You participate in involve with the cycling fraternity, you realised shop or no shop at all. The viability of the shop will depend on the size of the shop and on whether the market is favourable or unfavourable. The centre where you want to open your shop require you to sign a 5-year lease. Consequently, you want to be certain what to do before you sign the lease. You are contemplating to engage your previous lecturer to conduct a market research study. If the conduct the study, it could be favourable or unfavourable. Furthermore, if you open a large store, you can earn a profit of R60 000 if the market is favourable. Conversely, if the market is unfavourable, you can incur a loss of R40 000. On the other hand, if you open a small shop you can earn a profit of R30 000 if the market is favourable. Equally, if the market is unfavourable you can incur a loss of R10 000. At present, you are of the opinion the chance the market will be favourable is 50/50. Your previous lecturer will charge you R5 000 to conduct the market research. The lecturer estimated that there is a 0, 60 probability that the survey will be favourable. Furthermore, there is a 0, 90 probability that the market will be favourable given a favourable outcome from the study. Moreover, the lecturer warned you there is only a probability of 0, 12 of a favourable market if the market research results are not favourable. To find a solution to the problem you are required to: a. Construct a decision tree for the problem facing you. [28]