An auto dealer decides to buy cars in batches. Lots of 100, 200 and 300 cars. The dealer's profit depends on the demand for the cars.

Number of cars in the lot. 100 $ 60,000.00 $ 40,000

Profit when all the cars in the lot are sold 200 $ 80,000.00 $ 10,000

Profit if not all the cars in the lot are sold. 300 $ 100,000.00 Lost $ 2,000.00

Build: branch determines optimistic approach, conservative approach and loss of opportunity or sentiment.