Decision tree

TUTORIAL. ABC Company is considering to manufacture two new products; a temperature sensor or a pressure sensor. Both products are expected to be successfully marketed however, there is some chance that it will not be possible to develop them. The projected revenue from selling the temperature sensor is $1,000,000 and pressure sensor is $400,000 respectively. If development is unsuccessful for a product, then there will be no sales, and the development cost will be totally lost. Development cost would be $100,000 for the temperature sensor and $10,000 for the pressure sensor. Supposed the probability of development success is 0.5 for the temperature sensor and O.8 for the pressure sensor, you are required to: a) Construct a decision tree for the above problem and determine all probabilities. b) What is the expected value of both projects? c) Which of these products should ABC Company develop