b. (Decision Tree)

Company Y operates five luxury coffee shops in a Boston. To increase revenues, it is looking at two options, launching loyalty cards or cut prices, across that chain. The cost of launching loyalty cards is $600,000, while $400,000 for cutting prices. If the firm chooses to launch loyalty cards, it was estimated that there will be a 60% probability for high sales and will result to a revenue of $1.2M, otherwise would result to low sales of $950,000. If it chooses to cut prices, the probability for high sales is 80% which will result to a high revenue of $1M, otherwise low sales of $700,000. Using the decision tree analysis, help the business firm come up with the best decision, either launching a loyalty cards or cut prices, for it to increase revenues.

Hai. Good day. I would like to ask about the structure in this situation. Do i still need to put a line for the "nothing". Like, there is a decision to increase revenues, but it wasn't indicated about having nothing. I'm just curios. What would be the best presentation of the structure for this one? Thank you so much..