Question: Review the Decision Tree below. You are trying to determine the best decision between building a large factory, building a small factory, or do nothing.

Review the Decision Tree below. You are trying to determine the best decision between building a large factory, building a small factory, or do nothing. You are given a probability for a Favorable Market as 0.45 and the probability for an Unfavorable Market as 0.55. Based on the decision tree and the payoffs shown, what would be your decision as the owner of the business?

Review the Decision Tree below. You are trying to

0.45 Favorable Market Build Large Factory $ 550,000 0.55 Unfavorable Market $ 225,000 0.45 Favorable Market DECISION - 1 Build Small Factory $ $ 425,000 0.55 Unfavorable Market $ 155,000 Don't Build 0

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