Question
I need help understanding how the payoffs are calculated below. You are the administrator for a small, locally - owned emergent care facility. You are
I need help understanding how the payoffs are calculated below.
You are the administrator for a small, locally - owned emergent care facility. You are exploring the options for increasing services, with a likely need for expanding your clinic imaging capabilities. After hiring a consulting firm, you have been given some expected annual payoffs (in dollars) of each of the decision alternatives. Unfortunately, since the last analysis you have learned that a competitor may be expanding their services as well.
Populate the decision tree below. Of note, the expected payoffs for high/moderate/low demand are 50% of what they would be if a competitor decided not to open. Identify the expected payoff for each alternative.
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