An owner of a dealership of Generic Motors has to decide how to maximize profits for the slow month of August. She has the choice of having a sale to increase demand and/or adding a free upgrade to increase demand. Here is the data: Forecast without sale or upgrades 0.25 Forecast with sale only Forecast with upgrades only Forecast with both sale and free upgrade 0.39 Net Revenue (x000) $1500 0.3 High Medium 0.325 0.396 0.279 0.515 $1200 0.33 0.429 0.095 $900 0.271 0.42 Low Loss of revenue with sales (x000) $120 Loss of revenue with free upgrades (x000) $78 The chart shows the revenue for three levels of demand, and the forecast for each level of demand for each case. It also shows the projected TOTAL loss of revenue for having a sale and offering the free upgrade. Use a decision tree to maximize profit. What would you recommend the shop owner do? Should she have a sale? Should she offer a free upgrade? What is the maximum expected profit? An owner of a dealership of Generic Motors has to decide how to maximize profits for the slow month of August. She has the choice of having a sale to increase demand and/or adding a free upgrade to increase demand. Here is the data: Forecast without sale or upgrades 0.25 Forecast with sale only Forecast with upgrades only Forecast with both sale and free upgrade 0.39 Net Revenue (x000) $1500 0.3 High Medium 0.325 0.396 0.279 0.515 $1200 0.33 0.429 0.095 $900 0.271 0.42 Low Loss of revenue with sales (x000) $120 Loss of revenue with free upgrades (x000) $78 The chart shows the revenue for three levels of demand, and the forecast for each level of demand for each case. It also shows the projected TOTAL loss of revenue for having a sale and offering the free upgrade. Use a decision tree to maximize profit. What would you recommend the shop owner do? Should she have a sale? Should she offer a free upgrade? What is the maximum expected profit