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3. John Bolanos, president of ABC Industries, is considering whether or not to build a manufacturing plant in Laguna. His decision is summarized in
3. John Bolanos, president of ABC Industries, is considering whether or not to build a manufacturing plant in Laguna. His decision is summarized in the table below: Alternatives Unfavorable Market Favorable Market P600,000 -P190,000 Build large plant P170,000 - P70,000 Build Small Plant 0 0 Don't build Market Probabilities 0.4 0.6 a. Construct a decision tree b. Determine the best strategy expected monetary value. c. Find the expected value of perfect information.
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