Question
Can you assist with creating a decision table? I am a little stuck! 1.I am the business owner that specializes in Chicago Styled Deep-Dish Pizza
Can you assist with creating a decision table? I am a little stuck!
1.I am the business owner that specializes in "Chicago Styled Deep-Dish Pizza" here in New Jersey. Business has been great and has allowed me to consider expanding the business to different areas of New Jersey.
2.3 Alternatives would be:
Expanding to have 2 more locations
Expanding to have 1 more location
No expansion and just continue business as such
3.3 States of Nature would be:
Great demand for Pizza
Modest demand for Pizza
No demand for Pizza
Currently, when business is great, the restaurant can expect to make about $500 daily. Staffing is $200 daily. We will have a net income of $300.
When business is modest, the restaurant can expect to make about $300 daily. Staffing is $200 daily. We will have a net income of $100.
When business is poor, the restaurant can expect to make about $100 daily. Staffing is $200 daily. We will have a net loss of -$100.
G = great demand; M= modest demand; P= poor demand
However, note that it is stated in the scenario that business has been great, so you can fix one data point of the combination as G. The possible cases in the scenario of we take one state as great are in bold format wile the other possibilities are in regular format:
Expanding to 2 more locations
Meaning there would be three branches in total, which could be of the following state combinations:
GGG: $900 net income
GGM: $700 net income
GGP: $500 net income
GMM: $500 net income
GMP: $300 net income
GPP: $100 net income
MMM: $300 net income
MMP:$100 net income
MPP: -$100 net loss
PPP: -$300 net loss
Expanding to 1 more location:
Here, there would be two actively operating branches which could take the following combinations of states.
GG: $600 net income
GM: $400 net income
GP: $200 net income
MM: $200 net income
MP: $0 net income
PP: -$200 net loss
Not expanding:
G: $300 net income
M: $100 net income
P: -$100 net loss
Explanation:
So as we can see, a certain business could be great, modest, or poor, each with corresponding income and loss, provided in the scenario.
Upon expansion to two more locations, there would be a total of three operating branches, which could be of 10 different combinations of business state. We will then take the sum of the possible net income and loss of each. For G we have +$300, M corresponds to +$100, and P to -$100 then we will simply take the sum to determine the total net loss or income of each combination.
Next, if they chose to expand to one more location, there will be two active business branches: so there would be a total of six different combinations of business state as enumerated earlier, then you will also apply the same procedure for adding each net income and loss.
Lastly, if there would be no expansion, then there will only be a single branch which could take one of the states G, M, or P each with their corresponding net income and loss. But as stated, business has been great, so you can take that as a fixed $300 for one branch. Thus leaving you with the combinations in bold format.
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