ABC Company requires huge quantity of resource from their suppliers, the problem arises as there are numbers of product providers. Based on the past experience, the company has created a table accounting the performance of various suppliers as follows. A manager thinks that constructing decision tree is appropriate for future assignment of suppliers.

Calculate the Entropy (E) and Gain (G) of Production Cost by classifying suppliers into 3 groups (Cost$7,000; $7000>Cost$5,000 and Cost

1. Assuming that two new criteria are added into account,

(1) Reputation Level, and (2) Financial Background

1. Briefly, describe the construction procedures of Completed decision tree from part (i).

(This part should include the steps and result in the decision tree based on your own assumptions only without any calculations.)

2. Identify how decision tree helps in risk and crisis management.

001e 002 003el 0042 005200620072 008 0092 Company Code Production Cost ('000) Decision 62 se 42 4.52 7.52 5e 3e 3.5e 5.52 Fail Pass Fail Pass Pass Fail Fail Fail Pass 001e 002 003el 0042 005200620072 008 0092 Company Code Production Cost ('000) Decision 62 se 42 4.52 7.52 5e 3e 3.5e 5.52 Fail Pass Fail Pass Pass Fail Fail Fail Pass