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(8) Subscription Required to Edit and Save Start your free one month trial of Microsoft 365 or sign in to activate an existl Carlisle Tire

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(8) Subscription Required to Edit and Save Start your free one month trial of Microsoft 365 or sign in to activate an existl Carlisle Tire and Rubber, Inc., is considering expanding production to meet potential increases in the demand for one of its tire products. Carlisle's alternatives are to construct a new plant, expand the existing plant, or do nothing in the short run. The market for this particular tire product may expand, remain stable, or contract. Carliste's marketing department estimates the probabulities of these market outcomes to be 0.35,0.45, and 0.20, respectively. The file po9, 3115 contains Carlisle's payoifs and costs for the various combinations of decisions and outcomes. a. Use PrecisionTree to identify the strategy that maximizes this tire manufacturer's expected profit. The optimal decision for Carisisle Rubber and Tire, Inc, is to| b. Perform a sensitivity analysis on the optimal decision, letting each of the monetary inputs vary one at a time plus or minus 10 she from its base value, and summarize your findings. Which of the inputs appears to have the largest effect on the best solution? The optimal expected proft is most sensitive to the changes in the payoffs associated with the decision to

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