If you examine the decision tree in Figure 6.12 (or any other decision trees from PrecisionTree), you will see two numbers (in blue font) to the right of each end node. The bottom number is the combined monetary value from following the corresponding path through the tree. The top number is the probability that this path will be followed, given that the best strategy is used. With this in mind, explain (1) how the positive probabilities following the end nodes are calculated, (2) why some of the probabilities following the end nodes are 0, and (3) why the sum of the probabilities following the end nodes is necessarily 1.

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1 Acme multi dedisions with tec al uncertai Probability of failure 5 Fixed development cost 6 Fixed ma rketing cost All monetary values (except the unit margin in cell B7)are in $1000s, and all sales volumes are in 1000s of units. 0.2 18 9 Market 10 Great Probability 045 0.35 0.20 Sales volume Net revenue $10,800 400 620 12 Awful 13 14 15 16 17 18 19 20 21 $10,800 $4,800.0 -$2,000 1,074.0 $5,400 $600.0 $1,620 -$4,380.0 Madat product? 23 24 25 26 27 28 29 30 31 32 -$4,000.0 Rechnolloglical sucoess? $59.2 $4,000 -$4,0000 New Pioduct Dedsions 559.2