Question
DESIGN A DECISION TREE WITH THE NEXT INFORMATION. We need to make a decision; purchase a new software or train our engineers. The probability of
DESIGN A DECISION TREE WITH THE NEXT INFORMATION.
We need to make a decision; purchase a new software or train our engineers.
The probability of High sales are 30%, the probability of Medium sales are 50% and the probability of Low sales are 20%. The unit cost with the software is $50.00 dollars. The cost of the software is $150,000 dollars.
The training cost it´s $60 dollars per unit and the training cost it´s $250,000 dollars.
High scenario: 50,000 Units
Medium scenario 30,000 Units
Low scenario 10,000 Units
Step by Step Solution
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Step: 1
To design a decision tree we can analyze the expected costs and revenues for each option Option 1 Pu...
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Project management the managerial process
Authors: Eric W Larson, Clifford F. Gray
5th edition
73403342, 978-0073403342
