Question: Show step by step how to solve this problem Thin Example 5S-2 A manager must decide the size of a video arcade to construct. The

Show step by step how to solve this problem

Thin Example 5S-2 A manager must decide the size of a video arcade to construct. The manager has narrowed the choices to two: small or large. Information has been collected on payoffs and the following decision tree has been constructed. Determine which alternative (build small or build large) should be chosen in order to maximize the expected value. $40 Low demand (.4) $40 Do nothing High demand (0 6) 155 ($10) Do nothing Bucks large Low demand 10,4) Reduce prices High demand (0.6) 170

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