QUESTION 6 Expected value Applied to Business Application (10 points) A Manufacturing Company must make a decision regarding the level of sales and dedication to a new product There are 3 possible decisions to be evaluated. The potential profit from each decision alternative depends on the market acceptance which may be high or low. If market acceptance is high, each of the three decision alternatives, di, d2, and d3, will yield a profit of 310,295 and 280 thousand dollars respectively. If the demand turns out to be low, then the profits will be -55, 17, and 80 thousand dollars respectively. The prior probability estimates of demand to be high or low are 0.55, 0.45 respectively. The company first needs to decide whether to hire an expert to provide more accurate information regarding the future demand levels or not. 10 minutes on slide Graph the decision tree and place probabilities and payoffs on the tree using the following probabilities: P(F) = 0.75 P(U) = 0,25 P(low F) -0.35 P(High F) - 0.65 P(low U) -0.65 P(High(U) -0.35 P(low) -0.55 P(High) -0.45