Question #3 - Bob is thinking about opening a bicycle shop in his hometown. Bob believes that any small business should be started only if there is a good chance of making a profit. Bob can open a small shop, a large shop, or no shop at all. The profits will depend on the size of the shop and whether the market is favorable or unfavorable for his products. Because there will be a 5-year lease on the building that Bob is thinking about using, he wants to make sure that he makes the correct decision. Bob is also thinking about hiring a marketing professional to conduct a marketing research study. If the study is conducted, the study could be favorable (i.e., predicting a favorable market) or unfavorable (i.e., predicting an unfavorable market). Develop a decision tree for Bob.

Question #4 - Bob (see above Problem) has done some analysis about the profitability of the bicycle shop. If Bob builds the large bicycle shop, he will earn $68,000 if the market is favorable, but he will lose $40,000 if the market is unfavorable. The small shop will return a $35,000 profit in a favorable market and a $9,000 loss in an unfavorable market. At the present time, he believes that there is a 5050 chance that the market will be favorable. His marketing professional will charge him $5,000 for the marketing research. It is estimated that there is a 0.6 probability that the survey will be favorable. Furthermore, there is a 0.9 probability that the market will be favorable given a favorable outcome from the study. However, the marketing professional has warned Bob that there is only a probability of 0.12 of a favorable market if the marketing research results are not favorable. Bob is confused. a. Develop the decision tree and decision analysis. Please submit as single excel or word file and use screenshots or other professional approaches to present your work. Early submissions appreciated