The decision tree shows the profit outcomes for a coffee shop in a strong, weak, and/or recession
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Question:
The decision tree shows the profit outcomes for a coffee shop in a strong, weak, and/or recession economy for next year. The tree, then, is grown for an additional year for different decision outcomes of selling, renting out, and/or continue the operations. What is the probability that the economy will be weak in the coming year? What is the final value of the coffee shop in the best decision path (assuming that the owner does not consume the profit)? What is the final value of the coffee shop if the owner decided to operate for one extra year after the recession?
Related Book For
Business
ISBN: 978-0324829556
10th Edition
Authors: Willian M Pride, Robert J. Hughes, Jack R Kapoor
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