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A company manufactures a product which can be sold either direct to the customer via its e-commerce website or via a retailer. The company has

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A company manufactures a product which can be sold either direct to the customer via its e-commerce website or via a retailer. The company has business intelligence which shows direct to its customers the level of profit is pound 100 compared with pound 70 if it sells via a retailer. The associated sale probabilities of selling the product are 0.6 for direct and 0.8 via the retailer. If a sale is not made then the losses on each unsold product are pound 30 for selling direct and pound 50 for selling via the retailer: (a) construct a decision tree. (b) calculate the expected value for each alternative, and (c) decide which sales route should be recommended to the company

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