Problem 2 identified two capacity options for Arktec Manufacturing, and problem 4 identied three possible demand outcomes.

Problem 2 identified two capacity options for Arktec Manufacturing, and problem 4 identified three possible demand outcomes.
a. Draw the decision tree for Arktec Manufacturing.
When drawing your tree, assume that managers must select a capacity option before they know what the demand level will actually be.
b. Calculate the expected value for each decision branch. Which option would you prefer? Why?