The table below shows new investment opportunities for Enterprise.

Enterprise is seeking an opportunity to gain profit from a new investment. The following information was collected about the investment to help it decide whether to develop a new product range or launch a new marketing campaign.
	New Product Range	Marketing Campaign
Cost of option	£1,500,000	£760,000
Probability of High Returns	0.4	0.6
Probability of Low Returns	0.6	0.4
Result of High Returns	£5,000,000	£3,000,000
Result of Low Returns	£1,000,000	£850,000

Referring to the table above, illustrate a decision-tree diagram, calculating the expected values from the outcomes and net gains. (15)

Answer rating: 100% (QA)

Answer To illustrate a decision tree diagram for the investment opportunities of developing a new pr... View the full answer