Use backward reduction method. Show all your computations and show each decision points and chance each events.(10 points)

1. The DAT Company is considering to bid on the concession at a memorial stadium during a championship game. There is no cost to preparea bid. The company can for either the beverage concession or the hotdog concession, but not both. There is a 40% chance of either bid being accepted. The company's estimates of net profits depend on whether it is rainy day or a clear day. For the beverage concession, the company estimates a profit of 16,000 on a clear day and a loss of 9,000 on a rainy day. For the hotdog concession, the company estimates a profit of 10,000 regardless of weather conditions. During this particular time of the year, it has been observed that 75% of the day are clear and 25% are rainy. Should the company preparea bid, and if so, should it be for beverage or hotdog?