SHOW ALL WORK FOR DECISION TREE PROBLEM

For the decision tree problem depicted above, which is the preferred decision for Terry's

Tarantula Shop using the maximum expected value decision criteria assuming the probability of

"poor growth" is $0\mathrm{.}1,$ "moderate growth" is $0\mathrm{.}6,$ and "strong growth" is $0\mathrm{.}3?$ Show all your work.

$(3$ Points$)$

For the decision tree problem depicted above, which is the preferred decision for Terry's

Tarantula Shop using the maximum expected value decision criteria assuming the probability of

"poor growth" is $0\mathrm{.}5,$ "moderate growth" is $0\mathrm{.}2,$ and "strong growth" is $0\mathrm{.}3?$ Show all your work.

$(3$ Points$)$

Chapter $04-$ Project Management

For the decision tree problem depicted above, which is the preferred decision for Terry's

Tarantula Shop using the "minimax" $($minimize the maximum regret$)$ decision criteria? Show all

your work. $(3$ Points$)$

For the decision tree problem depicted above, which is the preferred decision for Terry's

Tarantula Shop using the relatively risk$-$averse "maximize the minimum profit" decision criteria?

Show all your work. $(3$ Points$)$

For the decision tree problem depicted above, which is the preferred decision for Terry's

Tarantula Shop using the relatively risk$-$inclined "maximize the maximum profit" decision

criteria? Show all your work. $(3$ Points$)$

Assuming the growth probabilities shown in part $2$ above, which decision would you personally

make? Explain your rationale. $(3$ Points$)$

Using the maximum expected value decision criteria and assuming the growth probabilities

shown in part $1$ above, what "Poor Growth Profit" for "Move" would make you indifferent

between $"$Do Nothing" and "Move"? Hint: You might use "Solver" in Excel for this problem. $(2$

Points$)$