You are planning a sizable excavation which requires the use of a dump truck. You can...

 

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You are planning a sizable excavation which requires the use of a dump truck. You can rent either a small or large dump truck. The small dump truck would cost $10,000 to rent for the entire time of the excavation versus $16,000 for the large dump truck. As currently planned the excavation work is not on the project's critical path, however, an analysis has indicated that there is a 30% probability that the activity will become critical. In this case, each day's delay in the activity will cost the project an additional $5,000. The table indicates the delay probabilities (short, medium or long) and their respective delays associated with the small or large dump truck. Small Dump Truck Large Dump Truck Delay Probability Delay in Days Probability Delay in Days Long 0.2 10 0.2 3 Medium 0.5 5 0.5 2 Short 0.3 2 0.3 1 Draw a fully labeled decision tree and then using expected value determine which dump truck should be chosen. You are planning a sizable excavation which requires the use of a dump truck. You can rent either a small or large dump truck. The small dump truck would cost $10,000 to rent for the entire time of the excavation versus $16,000 for the large dump truck. As currently planned the excavation work is not on the project's critical path, however, an analysis has indicated that there is a 30% probability that the activity will become critical. In this case, each day's delay in the activity will cost the project an additional $5,000. The table indicates the delay probabilities (short, medium or long) and their respective delays associated with the small or large dump truck. Small Dump Truck Large Dump Truck Delay Probability Delay in Days Probability Delay in Days Long 0.2 10 0.2 3 Medium 0.5 5 0.5 2 Short 0.3 2 0.3 1 Draw a fully labeled decision tree and then using expected value determine which dump truck should be chosen.