A manufacturing company considers bidding for a contract to produce $100,000$ units of a certain product.

The company can place a bid of $$5\mathrm{.}25$ per unit or a bid of $$5\mathrm{.}50$ per unit. They estimate that a bid of $$5\mathrm{.}25$ has

a $70\%$ chance of being accepted whereas a bid of $$5\mathrm{.}50$ has a $50\%$ chance of being accepted. If the company$$s

bid is accepted, then the company will have to choose between two processes available for manufacturing this

product: Process A that costs $$4\mathrm{.}75$ per unit and the new Process B that can cost $$4,$ $$5,$ or $$6$ per unit with

equal probability.

$1.$ Draw an influence diagram representing the company$$s problem. Clearly label all nodes. You do not need

to include the probabilities and the outcome values.

$2.$ Draw a decision tree representing the company$$s problem. Clearly label all nodes and include all relevant

informationQuestion III. Bidding for Contract

A manufacturing company considers bidding for a contract to produce $100,000$ units of a certain product.

The company can place a bid of $$5\mathrm{.}25$ per unit or a bid of $$5\mathrm{.}50$ per unit. They estimate that a bid of $$5\mathrm{.}25$ has

a $70\%$ chance of being accepted whereas a bid of $$5\mathrm{.}50$ has a $50\%$ chance of being accepted. If the company's

bid is accepted, then the company will have to choose between two processes available for manufacturing this

product: Process A that costs $$4\mathrm{.}75$ per unit and the new Process B that can cost $$4,$$$5,$ or $$6$ per unit with

equal probability.

Draw an influence diagram representing the company's problem. Clearly label all nodes. You do not need

to include the probabilities and the outcome values.

Draw a decision tree representing the company's problem. Clearly label all nodes and include all relevant

information