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Baluk LTD has set up a management consultation firm. The set up amount is 2000$. There is 75% chance of getting a customers. The firm
Baluk LTD has set up a management consultation firm. The set up amount is 2000$. There is 75% chance of getting a customers. The firm provide three consultancy services. The table bellow shows;
Nature of service Probability Expected Net Profit
Customer service 0.4 7400$
Personnel management 0.3 2000$
Financial Management 0.3 7000$
Using the information above;
- Draw a decision tree
- Determine the expected pay-offs
- Calculate the Expected Monetary Value (EMV) of the consultancy
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