Below are the correct answers I just need to see in a completed spreadsheet.

A store chain is considering opening another location. They could earn $3,000,000 in profit if this location succeeds or lose $1,950,000 if it fails. However, if they choose to not open the facility, there will be no effect on their earnings. The probability of the new store to be unsuccessful is 45%.

A market research agency can help the store chain to make a decision by looking at the current trends for a $115,000 fee. The results of this research will help predict whether a new store will be successful, given that it actually succeeds, with probability 0.75. On the other hand, the research will predict a failure, given that a new store will actually fail, with probability 0.65.

Use SilverDecisions to build a decision tree.

1. Based on your solution, the strategy that will maximize store chain's expected profit is

Correct answer: To conduct market research and open another store only if the market research predicts success

2. Based on your solution, the probability that research results will predict success is

Correct answer: 0.57

3. Based on your solution, the probability of a new store succeeding given that market research predicted success is

Correct answer: 0.72

4. Based on your solution, the probability of a new store succeeding given that market research predicted failure is

Correct answer: 0.32

5. Based on your solution, the EMV of the optimal decision strategy is

Correct answer: $804,980

6. Based on your solution, the EMV with no information is

Correct answer: $772,500

7. Based on your solution, the EMV with free information is

Correct answer: $919,980

8. Based on your solution, the EMV with free perfect information is

Correct answer: $1,650,000

9. Based on your solution, the EVI calculation shows that the market research is worth no more than

Correct answer: $147,480

10. Based on your solution, the EVPI calculation shows that no information can be worth more than

Correct answer: $877,500