Quantitative Analysis for Management, 13/e

Long description

The first square decision node is labelled “First Decision Point” and it branches from State of Nature Node 1 into two options: Conduct Market Survey and Do Not Conduct Market Survey. Two additional branches come off the Conduct Market Survey branch: Survey Results Favorable open parens 0.45 closed parens and Survey Results Negative open parens 0.55 closed parens. There is now a vertical row of three square decision nodes marked Second Decision Point that leads to branches for plant construction options and payoff amounts.

The data on the decision tree from the Second Decision Point is as follows:

• The square decision node stemming from favourable survey results branches into five additional branches:

  • Large Plant, State of Nature ...