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High Grade must decide if they are going to introduce a new wine. Management feels that if it does introduce the new wine, it will
High Grade must decide if they are going to introduce a new wine. Management feels that if it does introduce the new wine, it will yield a profit of $ million if sales are around million bottles, a profit of $ if sales are around million bottles, or it will lose $ million if sales are only around million bottles. If High Grade does not introduce the new wine, it will suffer a loss of $ for the research and development spent on developing the new soda. An internal marketing research study has found probabilities as follows: P million in sales; P million in sales; and P million in sales
Draw the decision tree that captures this problem
Analyze the tree to justify your explanation regarding whether High Grade should introduce the new wine.
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