Problem: A farmer specializing in alfalfa is experiencing a substantial backlog, and his company is considering three courses of action: A) Produce a new product B) Continue producing alfalfa (no change) C) Do not produce-keep money in bank saving The farmer has $100,000 equity for investment and his/her choice depends largely upon demand, which may be 50% high or 50% low. Given the payoffs, create and solve this problem using a decision tree. The farmer estimates the profits when choosing from the three alternatives (A, B, and C) under different probable levels of demand. The cost on th profits, in thousands of dollars are presented in the table below: Probability 1 0.5 Initial Low Investment Cost Demand -10 -5 3% A B C 5 3 0 0.5 High Demand 30 17 3%

Problem: A farmer specializing in alfalfa is experiencing a substantial backlog and his company is considering three courses of action: A) Produce a new product B) Continue producing alfalfa (no change) C) Do not produce-keep money in bank saving The farmer has $100,000 equity for investment and his/her choice depends largely upon demand, which may be 50% high or 50% low. Given the payoffs, create and solve this problem using a decision tree. The farmer estimates the profits when choosing from the three alternatives (A,B, and C ) under different probable levels of demand. The cost on profits, in thousands of dollars are presented in the table below: Poblerm: A) Poduce a new product Bj Contrue producine allalia lino changed Q Do not produce leep moner in bank soving