Question: Use the data in Solved Problem 5.1 to examine what happens to the decision if Sarah King can increase all of Design B yields from
Use the data in Solved Problem 5.1 to examine what happens to the decision if Sarah King can increase all of Design B yields from 59,000 to 64,000 by applying an expensive phosphorus to the screen at an added manufacturing cost of $250,000. Prepare the modified decision tree. What are the payoffs and which branch has the greatest EMV?

Figure 5.14 Decision Tree for Solved Problem 5.1 Design B (.8) (2) EMV=$600,000 Mean Yield 59 Sales 59,000 at $150 Mig. cost 100,000 at $75 Design cost
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