1. Use these cost, revenue, and probability estimates along with the decision tree to identify the best...
Question:
1. Use these cost, revenue, and probability estimates along with the decision tree to identify the best decision strategy for Trendy's Pies.
2. Suppose that Trendy is concerned about her probability estimates of the consumer response to the regional test market. Although her estimates are .7 for a high response and .3 for a low response, she is not very confident of these values. Determine how the decision strategy would change if the probability of a high response varies from .1 to .9 in increments of .1. How sensitive is the best strategy in part a to this probability assumption?
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1 The decision tree showing the payoffs probabilities expected values and decisions is given below T...View the full answer
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Related Book For 
OM4 operations management
ISBN: 978-1133372424
4th edition
Authors: David Alan Collier, James R. Evans
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