Handy Credit Corporation (HCC) provides retail and banking institutions throughout the United States and Canada with credit histories of individuals who are seeking various types of financing, such as home mortgages, car loans, and retail store credit cards. The company has branch officers in most major cities to provide rapid service to its customers. The company employs a data-base system. The data base is maintained at the home office in Kansas City for security purposes. Each branch office is equipped with computer terminals that provide direct access to the data base for information retrieval. However, all data entry is completed in Kansas City.
The company employs a staff of approximately 500 data entry clerks at the home office. The company hires inexperienced personnel and provides a training course as soon as new employees are hired. Hiring inexperienced personnel allows the company to realize an average savings in annual salary and related employee benefits of $3,000 per employee. G. Webster, director of human resources, has just completed a review of the employment records of the data entry clerks and has discovered that only 50% of the trainees satisfactorily complete the training course and continue their employment with the company. The remaining 50% are found lacking in aptitude for the job and are dismissed. While Webster is aware that the turnover rate for this type of position is typically high, this particular problem indicates a failure in the selection process.
Because the full training course for each data entry clerk costs the company $600 and the retention rate is so poor, Webster is considering using a battery of tests to assist in determining which individuals should be hired and trained. The testing program would cost $200 per applicant to administer. Webster estimates that 75% of the applicants would achieve an acceptable score. Those applicants who achieve an acceptable score and are hired would be given an abbreviated training course at a cost of $300. Those applicants hired despite scoring below the cutoff point would still receive the full training course. In those cases there would be no saving in training costs.
After the results of the testing program are known, the Human Resource Department will consider other employee attributes before making a decision. As a result of this additional screening, Webster estimates that 90% of the high-scoring applicants would be hired and sent to the abbreviated training course, and 10% of the low-scoring applicants would be hired and sent to the full training course. The remaining applicants would not be hired.
To help her make a decision regarding the testing program, Webster has assigned probabilities to satisfactory and unsatisfactory training course completion under varying conditions. These probabilities follow:

Required:
Prepare a decision tree representing the company decision problem, including all decision alternatives and possible outcomes with related expected values.

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Training Course Completion Satisfactory Unsatisfactory Test administered, result acceptable. Test administered, result unacceptable... .7 .2 .5 .3 .8 .5