We did not find results for: $(19$ points$)$ Innovation to Reality $($ITR$)$ is a startup company specializing in customer software solutions for government clients. Traditionally, they have produced software that runs as a standalone application on the customer$$s computers. They are moving to a modern paradigm called Software as a Service $($SaaS$),$ in which the customer accesses their software via a web browser. The software would run $$in the cloud$,$ meaning on servers hosted by a company like Amazon. ITR fears that they may not have the expertise to produce SaaS software, but they have been offered to team with a larger company called Taser, who has the right experience. Taser is pressuring them for an immediate teaming decision. If ITR teams with Taser, then ITR will apply for a corporate mentoring scholarship, and they have a $75\%$ chance of being awarded $$150,000$ by the program. Then, at the end of the year, they will see large sales, medium sales, or take a loss. If ITR does not team with Taser, then they must choose a cloud service provider to host the software, since Taser would have done that for them. The options for cloud service providers are Amazon or Microsoft. Again, they will find out at the end of the year what type of revenue stream they will receive. The table below shows the potential revenue streams. The probability of the three streams are the same across the three potential teaming companies, since these depend only on their ability to sell the service. However, the amounts vary because the providers charge different rates for their services. Type of Cloud Provider Probability Revenue Stream Taser Amazon Microsoft Large $$2,000,000$ $$1,600,000$ $$1,700,0000\mathrm{.}5$ Medium $$1,000,000$ $$1,200,000$ $$1,000,0000\mathrm{.}4$ Loss $-$$$300,000-$$$500,000-$$$500,0000\mathrm{.}1$ Use the completed decision tree provided to you on the next page to answer the questions below $($a$)$ What is the tree advising ITR to do$,$ and if they follow that advice, what are their expected earnings? $($b$)$ Assuming they follow the advice of the tree, what is the probability of making $$2$ million or more? $($c$)$ Suppose ITR decides not to team with Taser $($i$.$e$.,$ ignores the upper branch of the tree$).$ Now what is the tree advising them to do$?($d$)$ Implement the tree shown to you on the next page in Precision Tree and analyze the change in decision strategy as the Amazon Large revenue stream amount $($in the table above$)$ increases. Specifically, using one$-$way sensitivity analysis in Precision Tree, vary the Amazon Large Revenue Stream from $$1\mathrm{.}6$ million to $$2\mathrm{.}5$ million in increments of $\mathrm{.}1$ million $($this will be $10$ steps$)$ and provide the strategy region. If you are unable to use one$-$way sensitivity analysis in Precision Tree you can manually make the change. In that case you will input $10$ values manually and create a table showing the optimal value along with the Cloud Provider chosen. $($e$)$ State the $($approximate$)$ dollar value $($of the Amazon Large revenue stream$)$ at which the tree advises ITR to switch it$$s decision strategy..