Question 1: The choice made by Turtles Company is to launch a new line of leisure products necessitated the construction of small or large facility. The market's response to the new product line will determine the optimal choice of plant size. Marketing management has chosen to categorize potential long term demand as low, medium or high in order to perform an analysis. The projected profit in millions of dollars is displayed in the payoff table that follows. Alternative Small Facility Large Facility Probabilities Low Moderate 100 60 0,2 150 180 0,3 High 200 400 0,5 a. What is the decision to be made ? b. Draw the decision tree to represent this situation. c. Recommend a decision based on the use of the optimistic, conservative (pessimistic), and minimax regret approaches (without consideration of probabilities). he (10 p.) (25 p.) Free Trial (15 p.) Exit Full S

Question 1: The choice made by Turtles Company is to launch a new line of leisure products necessitated the construction of small or large facility. The market's response to the new product line will determine the optimal choice of plant size. Marketing management has chosen to categorize potential long term demand as low, medium or high in order to perform an analysis. The projected profit in millions of dollars is displayed in the payoff table that follows. a. What is the decision to be made ? b. Draw the decision tree to represent this situation. c. Recommend a decision based on the use of the optimistic, conservative (10 p.) (25 p.) (pessimistic), and minimax regret approaches (without consideration of probabilities). (15p)