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Please help me solve the attached pdf, it is regarding the decison table implementation and I am not very sure how to impleent it. Facility
Please help me solve the attached pdf, it is regarding the decison table implementation and I am not very sure how to impleent it.
Facility Construction Start with the Excel workbook (spreadsheet) Facility Construction - start.xlsx. A company needs to decide whether their next manufacturing facility is to be SMALL, MEDIUM, or LARGE. Demand for the products manufactured at this new plant may subsequently turn out to be LOW, MODERATE, or HIGH. The estimated probabilities and the profit (in $10,000) for the various combinations of plant size and demand are given in the following tables: Probabilities LOW 0.20 DEMAND MODERATE 0.40 HIGH 0.40 PLANT SIZE SMALL MEDIUM LARGE LOW 150 100 -60 PROFIT MODERATE 160 200 80 HIGH 170 220 320 Once demand is known, the company may attempt to improve profitability by advertising in situations where the size of the plant is larger than appropriate for demand. The parameters describing the various combinations possible are given in the following table: Plant Size Demand Medium Low Large Low Large Moderate Possible Results Poor Good Poor Good Excellent Poor Good Probability 0.40 0.60 0.20 0.50 0.30 0.40 0.60 Profit 90 130 -90 60 90 40 100 Solve this problem by using a decision tree provided in the starting file. HINT: On the spreadsheet you will find the structure of the decision tree provided. DO NOT RESIZE ROWS OR COLUMNS. Begin by labeling (place text in an appropriate cell) all branches with alternative names and event names and probabilities. Then specify the payoffs at the end of each final branch by entering the correct value in the cell to which to arrow is pointing. Then solve the decision tree by working backwards and labeling each alternative and event node with the correct values and indicate alternative branches not taken with double arrows (There are several double arrow objects in columns x, y and z which you can click and drag to appropriate location). Be sure to label the initial alternative node with the correct value. \fID 0 0 0 0 0 0 0 0 0 0 11 0 0 0 0 0 0 21 22 Name Value 0 TreePlan 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Prob 0 Pred 0 0 0 0 0 0 0 0 Kind 0D 0E 0E 0E 1T 1T 1T 2D 2T 2T 3D 3D 3T 7E 7T 13 T 13 T 10 E 10 T NS 3 3 3 3 0 0 0 2 0 0 2 2 0 2 0 0 0 3 0 23 24 19 20 21 22 23 24 25 0 0 17 T 17 T 11 E 11 T 21 T 21 T 17 T 0 0 2 0 0 0 0 S1 S2 1 4 7 10 0 0 0 13 0 0 17 21 0 15 0 0 0 19 0 S3 2 5 8 11 0 0 0 14 0 0 18 22 0 16 0 0 0 20 0 S4 3 6 9 12 0 0 0 0 0 0 0 0 0 0 0 0 0 25 0 S5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Row 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Col 35 7 30 64 2 7 12 23 32 37 52 68 77 19 27 17 22 47 57 Mark 1 5 5 5 9 9 9 9 9 9 9 9 9 13 13 17 17 13 13 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 23 0 0 0 0 0 0 24 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 42 47 64 72 62 67 52 17 17 13 13 17 17 17 1 1 1 1 1 1 1Step by Step Solution
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