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time to fall to 4 hours, management believes that each truck will be able to make 16 service calls per week on average-an increase of

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time to fall to 4 hours, management believes that each truck will be able to make 16 service calls per week on average-an increase of 4 calls per week. With each truck making 4 additional calls per week and the aver- age revenue per call at $150, the revenue increase per truck per week is $600 (4 * $150). With 10 trucks in service 50 weeks per year, the average annual revenue increase will be $300,000 ($600 * 10 X 50). Decker Company management is unsure whether the new system will enable response time to fall to 4 hours on average, or will be some other number. Therefore, management has developed the following range of outcomes that may be possible outcomes of the new system, along with probability estimates of each outcome occurring: New Response Time # Calls/Truck/Week Likelihood 2 hours 20 20% 3 hours 18 30% 4 hours 16 50% Given these figures, prepare a spreadsheet model that computes the expected value of the annual revenues to be produced by this new system

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