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Fill in yellow spaces. 5. Construct a decision tree for the following decision situation and indicate the best decision. Fenton and Farrah Friendly, husband-and-wife car
Fill in yellow spaces.
5. Construct a decision tree for the following decision situation and indicate the best decision. Fenton and Farrah Friendly, husband-and-wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full-sized cars, and from a truck company. The success of each type of dealership will depend on how much gasoline is going to be available during the next few years. The profit from each type of dealership, given the availability of gas, is shown in the following payoff table: MAT540 Homework Week 2 Page 4 of 4 Dealership Gasoline Availability Shortage Surplus 0.7 0.3 $25,000 $150,000 -90,000 650,000 125,000 170,000 Compact cars Full-sized cars TrucksStep by Step Solution
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