Question
Abu Bakar is trying to decide between selling cheesecake or vegan cake because he cannot make both due to the labor shortage in his bakery.
Abu Bakar is trying to decide between selling cheesecake or vegan cake because he cannot make both due to the labor shortage in his bakery. He believes he can sell his cakes to two potential cake houses, Village Cake House and Chocolate Delight Cake House. If he makes cheesecakes, he has a 50% chance of selling it to the Village Cake House weekly purchases of about 2000units. If the Village Cake House won't buy it, then he thinks he has an 80% chance of placing it with Chocolate Delight Cake House, with sales of 1500units per week. On the other hand, if he makes vegan cakes, he feels he has a 40% chance of selling it to Village Cake House, resulting in weekly sales of about 1700units. If the Village Cake House doesn't buy it, he has a 50% chance of selling it to the Chocolate Delight Cake House with sales of 2000units per week. Using a decision tree analysis, which cake Abu Bakar should make?
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