What size facility should Spencerville Products build based on expected values and using a decision tree approach? You must also provide the decision tree using the appropriate decision tree symbols.

Spencerville Products is expanding its operations west of the Mississippi. Its first step is to build a manufacturing facility in Denver to satisfy demand on the West Coast it will not produce any items not needed to meet demand. Spencerville has an option to build either a large facility that has an annual capacity of 500,000 units per year or a smaller facility with an annual capacity of 250,000 units per year. It must build one of these two facilities - it does not have any other options. The expected demand for the company's products is shown as either high or moderate in the table below: Demand Level High Moderate Annual Demand (units/year) 450,000 300.000 Probability 0.6 0.4 The small facility has a profit of $5.50 per unit. The large facility has a profit of $4.75/unit